The US stock market fell due to concerns about the distribution of the Covid-19 vaccine and investors waiting for a bumper harvest.
Futures linked to the Standard & Poor’s 500 Index fell 0.7%, while Dow Jones Industrial Average futures fell 0.8%. Futures related to the high-tech Nasdaq-100 index fell 0.2%.
Hani Redha, portfolio manager of PineBridge Investments, said that the delay in launching the Covid-19 vaccine and continued lock-in measures is a “double whammy” for investors, which is bad news for investors.
He said: “I think the market hopes that until now we are talking about relaxing rather than tightening restrictions.” “As far as vaccine launches are concerned, this is very problematic in the short term. It is essential to contain the growth rebound and these problems will only increase delay.”
On Wednesday, AstraZeneca dismissed reports of its withdrawal from meetings with EU officials because the dispute between the two groups over vaccine shortages has deepened.
The Biden administration said on Tuesday that it will purchase enough additional coronavirus injections to vaccinate most parts of the United States in a two-dose program before the end of the summer.
In pre-market trading on Wednesday, investors are analyzing AT&T’s performance,
One of the busiest days of the quarterly earnings season for Blackstone Group and Boeing.Apple earnings,
Facebook and Tesla will expire after the market closes. Investors are eager to see how the technology giants perform in a quarter, which is characterized by continuous shutdowns and stay-at-home orders.
Mr. Redha said: “The barriers for technology stocks to break through are high because we are still locked in, but relative to those higher expectations, they do perform well.”
Microsoft shares rose 2.3% before the opening, after the company announced a record quarterly sales on Tuesday. Its stock closed at a new high on Tuesday.
After the drugstore chain appointed Starbucks president of operations Rosalind Brewer as its next chief executive officer, shares of the Walgreens Boots Alliance rose 6.9% in premarket trading.
So far, earnings have satisfied the market, and investors continue to bet on the Fed’s economic support and the possible stimulus plan of the Biden administration. On Tuesday, the S&P 500 Index hit a new intraday high, and then fell in the final minutes of trading.
Walsh & Nicholson Financial Group (Walsh & Nicholson Financial Group) portfolio manager Brian Walsh (Jr.) said: “The Federal Reserve and the new Biden (Biden) stimulus plan, the stock market It’s a very positive background.” “They said that we will not let the market crash now, and since bond yields have been low, there is no choice.”
The Federal Reserve is expected to maintain monetary policy unchanged, and Chairman Jerome Powell (Jerome Powell) may emphasize the bank’s commitment to support the economy with low interest rates and purchase bonds for the foreseeable future. Powell may face the question of economic health and how long the Fed’s stimulus measures will last.
GameStop surged by more than 80% in pre-market trading because day traders promoted by social media are preparing to join the retailer in another day. In the struggle between retail investors and retail hedge funds, the stock rose 113% on Tuesday. After the market closed on Tuesday, Tesla CEO Elon Musk wrote in a tweet: “Gamestonk!!” Obviously referring to crazy transactions.
Data on durable goods orders will be announced at 8:30 am Eastern Time. The figure is expected to show monthly growth for the eighth consecutive month, highlighting the resilience of manufacturing during the pandemic.
In the commodity market, the international oil benchmark Brent crude oil rose 0.1% to $55.72 per barrel. The price of gold fell 0.7% to US$1,838.70.
Overseas, the pan-European Stoxx Europe 600 fell 1.1%, while in Asia, the stock indexes were mixed. Japan’s Nikkei 225 Index rose 0.3%, Hong Kong’s Hang Seng Index fell 0.3%, while in Mainland China, the Shanghai Composite Index edged up 0.1%.
Write to Will Horner at William.Horner@wsj.com
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