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U.S. Futures Slide on Wall Street

U.S. futures are set to open lower on Wednesday in stock trading. In consolidation after strong gains, Tuesday closed out Wall Street’s best quarter in more than two decades. 

Volumes could be light with scheduled key economic data, alongside caution given the resurgence of Covid-19 cases in many states. 

S&P 500 futures traded at 22 points, or 0.7%, lower. Nasdaq futures were down 57 points, or 0.6%. The Dow futures contracts were down 266 points, or 1% 

All three cash indices posted their third straight positive month in June. They have rebounded after the sharp losses in March. 

Stock market reports that the Dow Jones Industrial Average recorded its best quarter since the first quarter of 1987. The S&P 500 recorded its best quarter since the fourth quarter of 1998. Moreover, the Nasdaq Composite recorded its best quarter since the fourth quarter of 1999.

To help the markets push higher, there has been an extraordinary injection of monetary and fiscal stimulus. This is from both the Federal Reserve and the Trump administration.

Central bank Chairman, Jerome Powell, and Treasury Secretary, Steven Mnuchin, expressed their willingness to provide support for as long as necessary. This was in a testimony before the House Financial Services Committee on Tuesday.

The Senate voted to extend the deadline for businesses to apply for coronavirus aid until August. This was under the Paycheck Protection Program.

U.S. Futures and a Second Wave of Coronavirus

Powell warned that a second wave of the pandemic could force everyone to withdraw again from economic activity. It could undermine public confidence, something needed to get back to lots of economic activity. A second wave could again impact U.S. futures.

This is particularly relevant as the U.S. reported over 47,000 new cases of coronavirus on Tuesday. This is their biggest one-day spike since the start of the pandemic. Also, this has prompted populous states like California, Texas and Florida to restrict economic activity once more.

Payrolls processor ADP will release its monthly report on employment in the U.S. economy at 8:15 AM ET. Analysts expect the economy to have created three million jobs. 

The ISM manufacturing index is due at 10 AM ET. The stock markets expect it to rebound sharply. Moreover, the minutes from the latest FOMC meeting are due at 2 PM ET.

Elsewhere, Britain’s FTSE 100 index is seen opening 18 points higher on Wednesday, according to financial bookmakers.



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