Dow Jones Industrial Average futures traded slightly lower on Sunday night as a growing number of Covid-19 cases continued to rise in the markets.
Dow futures contracts fell 66 points, or 0.2%. The move suggests an initial reduction of about 50 points. S&P 500 futures fell 0.1%, while Nasdaq 100 futures rose 0.1%.
“Stocks will trade this week on lockdown concerns and rising cases, but will see a rally in early December as the near-term optimism, stopgap stimulus package increases,” said Shannon Sussia, chief investment officer at Boston Pvt. “Overall, the pressure and pull between tech stocks and the cyclone will likely continue for the next few weeks, and we may see some tough days as economic data is released that reflects the decline in consumer spending we are currently experiencing.”
The three major averages completed Friday’s session low, while the Dow and S&P 500 also recorded weekly losses, down 0.73% and 0.77%, respectively, for the first negative week in three weeks. The Nasdaq Composite gained 0.22% during the week, registering its second straight week gain.
U.S. on Friday. More than 195,500 new cases were reported in. Public health officials have warned that Thanksgiving celebrations on Thursday could spread more and more.
According to a CNBC analysis of data compiled by Johns Hopkins University, Friday’s surge brings the seven-day average of new cases above 167,600, an increase of nearly 20% from a week earlier. Data from 43 states and the District of Columbia, Hopkins, showed at least 5% a week in new seven-day cases.
There are coronavirus-related restrictions in some places due to the spike. Governor of California on Thursday. Gavin News set up a “limited state home order” on most residents of the state, requiring irregular work and gatherings to close between 10pm and 5pm, a move following a decision by New York City Mayor Bill de Blasio to close. The country’s largest school system amid a surge in cases
Such measures in the first quarter will “grow negatively,” JPMorgan economists said Friday. Pay firm downgraded its first-quarter GDP outlook to 1% contraction, which would predict negative GDP in the first quarter of 2021 on Wall Street.
The disagreement between the Treasury Department and the Federal Reserve over continuing funding for some of the emergency programs that erupted in the Covid-19 also weighed on the markets last week.
However, sentiment was tested by positive developments in the treatment and prevention of Covid-19. The Food and Drug Administration on Saturday approved the emergency use of Regeneron’s Covid-19 antibody treatment, an experimental treatment given to President Donald Trump. Meanwhile, on Friday Pfizer and Bioentech applied for emergency authorization from the FDA for their coronavirus vaccine, which has a 95% effectiveness rate.
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