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,”
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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