Dow Jones Declined by 1.1%. What About Other Stocks?
Dow Jones futures plummeted down sharply on Thursday, along with S&P 500 futures and Nasdaq futures due to rising coronavirus cases and ongoing stimulus doubts. There was some negative news for techs as well. Dow Jones futures dropped by 1.1% vs. fair value, while S&P 500 futures tumbled down by 1.2%, and Nasdaq 100 futures declined by 1.6%.
On Wednesday, the stock market rally lost ground as Treasury Secretary Steven Mnuchin announced that a Covid-19 stimulus bill is unlikely before Election Day. Furthermore, Vertex stock and Fastly stock collapsed overnight.
Fastly is an edge networking leader. The stock cut its third-quarter revenue guidance, citing lower demand from its main customer TikTok. That news could weigh on many hot software names, with Cloudflare (NET), Twilio (TWLO), and Datadog (DDOG) also retreating.
Arrowhead Pharmaceuticals (ARWR), which is also working on lung and liver disease treatments, surged forward. On the other hand, Vertex Pharmaceuticals (VRTX) halted developing a treatment for an inherited protein deficiency that can also cause liver and lung diseases due to safety concerns.
On Thursday, Taiwan Semiconductor Manufacturing (TSM) reported third-quarter views, which are better than analysts expected. The stock also raised guidance. Such results and outlets may be a positive sign for customers such as Nvidia (NVDA), AMD (AMD), Apple (AAPL), and Qualcomm (QCOM). However, TSM lowered slightly before the open.
A trio of electric-car stocks cleared buy points during Wednesday’s session. China electric-car makers Xpeng Motors (XPEV) and Nio (NIO) skyrocketed the above entry points. Tesla (TSLA) also moved into the buy range, even though it fell on Thursday morning. On the other hand, some breakout attempts fizzled, among them Tractor Supply (TSCO) and Netflix (NFLX).
Will the U.S. policymakers agree on the stimulus deal before election day?
On Wednesday, Treasury Secretary Mnuchin stated that getting a Covid-19 stimulus deal before the Nov. 3 Election Day will be difficult. There has been some progress on several issues, but the two sides are still far apart. According to Mnuchin, House Speaker Nancy Pelosi didn’t agree on a stand-alone bill for airline aid during the Wednesday morning stimulus deal negotiations. A Pelosi spokesman cited that the meeting was productive, and it will continue on Thursday.
Last Friday, President Donald Trump stated that he could accept a $1.8 trillion stimulus deal, which is not far from the $2.2 trillion package that House Democrats have passed. However, Pelosi and Senate Republicans objected. Despite that, there have been few indications that Senate Republicans and House Democrats are ready to make new concessions to reach the deal soon.
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