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Home / Business / As COVID cases increase, Dow Jones futures fell more than 600 points

As COVID cases increase, Dow Jones futures fell more than 600 points



Stock index futures fell sharply on Wednesday morning. Under the pressure of increasing COVID-19 cases in the United States and Europe, investors’ worries about economic recovery have increased.

Dow Jones Industrial Average Futures

YM00

Fell 622 points, or 2.3%, to 26,743, while S&P 500 futures

ES00

It dropped 66 points or 2% to 3,317.Nasdaq 100 futures

NQ00

It fell 188 points, or 1.6%, to 11,400.

Loss after the Dow

Taoism

It fell 222.1

9 points, or 0.8%, to close at 27,463.19 on Tuesday, while the S&P 500

SPX

It fell 0.29 points or 0.3% to close at 3,390.68.Nasdaq Composite Index

make up

It bucked the trend and weakened, rising 72.41 points or 0.6% to close at 11,431.35.

What is driving the market?

This week, as Germany and France imposed further restrictions on business activities to limit the rise in COVID-19 cases, and the United States suffered a record number of new cases, stocks were under pressure.

After reaching a record-breaking record of 80,000 last weekend, the number of new case days in the United States rose to above 70,000 on Tuesday. According to an analysis of data from Johns Hopkins University by the Wall Street Journal, in the past week, the United States has reported a record 500,000 cases, while the average number of new cases confirmed on Monday for 7 days reached A record 69,967 cases. .

“In the past 7 days, in 36 states, the hospitalization rate for the coronavirus has increased by at least 5%,” said David Madden, market analyst at CMC Markets. “Traders pay close attention to hospitalization rates because the authorities want to ensure that healthcare services are not overwhelmed-this can often trigger the imposition of stricter restrictions.”

Analysts say the unrest before the November 3 presidential election, less than a week away, has also exacerbated the unrest. Democracy challenger Joe Biden has been ahead of President Donald Trump in the polls, but the campaign has tightened. Analysts said that unclear or controversial election results may be the worst case.

Meanwhile, the CEO of Alphabet Inc.

Gauge

Gauge

Google, Facebook Inc.

FB

,
And Twitter Inc.

TWTR

Will appear at the Senate Commerce Subcommittee hearing, entitled “Will the broad immunity of Section 230 cause big technical bad behavior?”

see: Are you ready to participate in another Big Tech hearing/income dual discussion?

Investors continued to linger during the busiest week of the earnings season, including the software giant’s better-than-expected performance on Tuesday night Microsoft Corporation

Microsoft

,
Although the company’s forecast was lower than expected. The stock fell 2% in pre-market trading.

Katie Stockton, a market technician and founder of Fairlead Strategies, said that the recent pullback did reflect the weakening of short-term momentum, but Stockton told MarketWatch that as of Wednesday, the market had been at a low point since the end of September. “Oversold” appeared for the first time since. The key level she has been focusing on is the 3357 points of the S&P 500.

Stockton said that in the long run, the upward trend will remain unchanged. On the one hand, the breadth of the market is greater.There are also some scales that look more terrifying, such as peaks in VIX

only

,
She believes that the 33% rise this week is actually just a reflection of sentiment. “This should reassure some people that maybe a day like today is not the best day to run out and sell everything. Don’t panic and let the market settle down and show us where it is about to close.”

Stockton also believes that FANMAG’s earnings report this week can help the market tide over difficulties. “If their income is well received, it may prompt the main index to get out of the downturn.”

The government said on Wednesday that the September trade deficit narrowed to $79.4 billion. Economists surveyed by MarketWatch had previously predicted that the figure would expand from $82.9 billion a month ago to $83.5 billion.

Which companies to focus on?
  • FireEye Inc.

    Fier

    After announcing record financial results and raising its annual forecast later on Tuesday, the company’s stock rose 2.3%.

  • Juniper Networks

    National Public Radio

    After Tuesday’s post-market results exceeded Wall Street’s expected earnings and income, the stock rose 1.1% in pre-market trading.

  • General Electric Company

    give

    The industrial group reported positive adjusted profit and cash flow in the third quarter because of a lower-than-expected decline in revenue and the company’s stock price rose by more than 5%.

  • Share of United Parcel Service

    ups

    After the package delivery company reported that its third-quarter profit and revenue exceeded expectations, pre-market transactions rose, and all three business units exceeded expectations.

How to trade in other markets?

Among global stocks, the Shanghai Stock Exchange

Shanghai Commodity Exchange

Closed up 0.5%, while the Hong Kong Hang Seng Index

Hang Seng Index

And Japan’s Nikkei 225 Index

I

Both fell 0.3%.Pan European Stoxx 600 Europe

SXXP

Fell 2.5% to the Financial Times 100

UKX

Fell 1.9%.

U.S. benchmark crude oil futures fell

CL00

It fell 4.6% to near US$37.74 per barrel.Gold futures

GCZ20

It fell 1.7% to $1,879.40 per ounce.

ICE dollar index

DXY

The euro’s exchange rate against a basket of six major competitors rose by 0.7%.

10-year bond yield

TMUBMUSD 10 years

One day after hitting a multi-month high, the euro fell 1.2 basis points to 0.764% against the dollar. Yields and bond prices move in the opposite direction.

Read next: Is there anything good in 2020?These strategists say that the “January effect” may come early


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