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Dow futures are falling slightly to start the week amid rising cases of coronavirus

Dow Jones Industrial Average futures fell slightly in trading overnight Sunday as a growing number of Covid-19 cases continued to weigh on the markets.

Futures contracts tied to the Dow fell 66 points or 0.2%. The move indicated an opening decline of approx. 50 points. The S&P 500 futures fell 0.1%, while the Nasdaq 100 futures hardly changed.

“Equities this week will trade on lockdown concerns and rising stocks, but may see a boost into early December as short-term optimism, the stopgap stimulus package grows,”

; said Shannon Saccocia, Chief Investment Officer at Boston Private . “Overall, the push and pull between tech stocks and cyclicals is likely to continue over the next few weeks, and we could see some tough days as economic data is released that reflects the deterioration in consumer spending we are currently experiencing.”

All three major averages ended Friday’s session lower, while the Dow and S&P 500 also had a loss for the week, falling 0.73% and 0.77%, respectively, for their first negative week in three. Nasdaq Composite managed to even out a 0.22% gain for the week, marking its second straight week with gains.

The lower movement came as Covid-19 cases continue to rise, with the United States reporting a record-high increase of more than 195,500 new cases on Friday. Public health officials have warned that Thursday’s Thanksgiving celebration could further exacerbate the outbreak.

Friday’s jump brings the seven-day average of new cases to over 167,600, an increase of nearly 20% compared to a week ago, according to a CNBC analysis of data collected by Johns Hopkins University. The seven-day average of new cases has risen by at least 5% week-over-week in 43 states and the District of Columbia, data from Hopkins shows.

The tip has led to coronavirus-related limitations in some places. On Thursday, California government Gavin Newsom introduced a “limited Stay at Home Order” for a majority of state residents who demanded that non-essential work and gatherings cease between 6 p.m. 22 and at the nation’s largest school system in the midst of a leap in cases

Such measures are likely to deliver negative growth in the first quarter, JPMorgan economists said Friday. The company downgraded its first-quarter GDP outlook to a 1 percent contraction, the first on Wall Street to expect negative GDP in the first quarter of 2021.

A disagreement between the Treasury Department and the Federal Reserve over the continuation of funding for some of the emergency programs introduced in the midst of the Covid-19 eruption also weighed on markets last week.

The feeling was kept in check, however, by the positive development over the treatment and prevention of Covid-19. On Saturday, the Food and Drug Administration on Saturday issued an emergency use clearance for Regeneron’s Covid-19 antibody treatment, the experimental therapy given to President Donald Trump. Meanwhile, on Friday, Pfizer and BioNTech applied for emergency approval from the FDA for their coronavirus vaccine, which has a 95% efficacy rate.

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