By
Steve Muchoki
May 16th, 2024
As there finally appeared some positive news about the coronavirus cases, the global markets started to react. Today in the pre-market, Dow futures have gained 837 points already.
Global stock prices have risen in response to new COVID-19 statistics. The same we can say about stock futures and Dow futures are not an exception. Sources say that financial markets have gone into a rebound in anticipation of fewer infected and dead due to that coronavirus. Reports coming in from some of the most affected countries show that the deaths and infections are slowing.
Global Stock Prices Are Rising Thanks to Positive COVID-19 News
European markets have rebounded somewhat. Sources state that the European Stoxx 600 climbed about 2.5% at the opening bell.
The U.S. stock futures followed a similar pattern too. Today in the pre-market, Dow futures have gained already 837 points. The Nasdaq Composite and S&P 500 futures went up in similar ways too. There had been indications that the Dow futures were going to climb for about 900 points as well.
This good news comes as markets slid last week due to the COVID-19 situation. The Dow was down by 2.7%. The S&P 500 also fell by 2.1%. The Nasdaq Composite was in the negative by 1.7% as well.
The bears have been in control of the financial markets for the last six weeks. This has occurred as financial and business malaise has been occurring due to the COVID-19 pandemic. Businesses have suffered and as demand has fallen. Governments the world over have gone to extreme lengths to simulate the economy with measures.
The United States had already injected about $2 trillion via stimulus plans. The U.S. Federal Reserve has also given indications that unlimited buying of governments is also going to be possible at this time as well.
On the flip side, these market rebounds may reverse quickly. Currently, no major economic numbers are coming in today. It means that either this may be the quiet before the storm or the quiet before the rainbow.
Oil Prices Are Still Under Pressure
Oil markets also dropped by 1%. This occurred after a key OPEC meeting was shifted to a later date. Suadi Arabia and Russia were supposed to meet on production issues. The meeting is expected to dowse tensions between the two OPEC member states.
This comes as U.S. President Donald Trump has indicated positive expectations on production cuts between the two countries. Oil prices have fallen in the past two weeks due to disagreements between the two countries on production cuts. OPEC is expected to ramp up production within April.
Sources also indicate that until a way is found out of the COVID-19 pandemic, the financial markets may continue to move south. A functional vaccine is a year away and multiple opinions exist on treatments for the coronavirus.
Then again, there is always light at the end of every tunnel. The global economy will rebound.