All three futures – Dow Jones, S&P 500, and Nasdaq 100 – opened lower today on Tuesday. The European market also remained under pressure on rising COVID-19 cases.
Despite the positive news of the vaccine, the fast surge in fresh COVID-19 cases in the US has put pressure on the market and stock futures. After a major rally last month, stock indices now to be hinting at correction in near future.
Global stocks under pressure as pandemic concerns outweigh stimulus hopes. S&P 500 Futures dip amid fears of restrictions as infections climb. Bonds held on to Mon’s gains w/US 10y yields at 0.93%. Dollar steady w/Euro at $1.2120. Gold trades higher at $1868. #Bitcoin at $19.1k. pic.twitter.com/QLMf5T5s9e
— Holger Zschaepitz (@Schuldensuehner) December 8, 2020
On Tuesday early morning, stock futures tanked as investors as waiting for fresh announcements on additional fiscal stimulus. The Dow Jones Industrial Average futures tanked 100 points earlier today. Similar was the case with Nasdaq 100 futures and the S&P 500 futures.
On Monday, December 7, both – Republican and Democratic leaders announced that Congress is working to extend its funding for an additional week. Speaking to CNBC, Willie Delwiche, investment strategist at Baird said:
“News out of DC that fiscal stimulus talks have resumed is also a positive development (though until a deal actually passes the President’s desk, this might be all hat, no cattle). These headlines come at a critical time as we remain in a challenging time from both a health and economic perspective.”
On one end as the COVID-10 cases continue to surge, the growth in US employment numbers is slowing down. Moreover, as Christmas is approaching in two weeks, authorities are mulling out new measures. The surge in the COVID-19 cases has forced several states and cities to re-impose stricter social-distancing measures.
More Restrictions Round the Corner
New York Gov. Andrew Cuomo has hinted at stricter restrictions in hospitals reach a critical point or overwhelming condition.
Cuomo said:
“You can’t overwhelm the hospital system. Overwhelming the hospital system means people die on a gurney in a hallway.”
Apart from the US, the European markets have also seen correction today. The FTSE 100 opened 0.5% lower today in London. The DAX also declines by 0.1% while the CAC dipped by 0.3%. The UK now becomes the first official Western country to start giving COVID-19 vaccinations. The country will start with the Pfizer/BioNTech COVID-19 vaccine shots.
On the other hand, UK Prime Minister Boris Johnson is trying his final leg to push the Brexit deal through. Naeem Aslam, chief market analyst at AvaTrade told Yahoo Finance:
“The British Prime Minister, Boris Johnson, is making the final attempt to find the deal, which seems to be lost in the sand. Traders know that this will be the final push for a Brexit deal, and the Sterling has become increasingly more volatile on the back of this. The currency is very likely to see major spikes while a deal and no-deal scenario continues to play. For many investors, the base case scenario is still that there will be Brexit in the final hour, final minute, and the final second.”
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