U.S. stock market futures rallied from steep initial losses on Monday, suggesting a pause to the selloff when trading begins later, following the worst week on Wall Street since 2008.

Dow Jones Industrial Average futures initially fell more than 300 points, but reversed course and were last up by nearly 500 points. S&P 500 futures and Nasdaq Composite futures initially fell more than 1.5%, but were last up about 1.5% each.

The rise appears have been tied to hopes that the world’s central banks, including the Federal Reserve, will soon take action to prevent deeper economic pain.

Goldman Sachs Group Inc. economists wrote Sunday that they expect the Fed to cut interest rates by 50 basis points soon, perhaps even before their next scheduled meeting March 16-17. That move would be followed by another 50-basis-point cut in the second quarter, they said, and would be part of a coordinated effort by the world’s central banks to cut interest rates.

Source : Marketwatch