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U.S. Stocks Lowered Monday as Sino-U.S. Tensions Arise 

 

U.S. stock index futures tumbled down from record levels on Monday. Fresh U.S.-China tensions over Hong Kong dampened sentiment, causing stocks to decline. Besides, investors await concrete signs of progress on a Covid-19 relief bill and remain cautious until then.

 

Risk aversion hit global markets after reports about Washington preparing to impose sanctions on some Chinese officials. They allegedly played a role in Beijing’s disqualification of elected opposition legislators in Hong Kong. Meanwhile, China responded that reports declared that it firmly opposes U.S. interference in its domestic affairs.

 

On Friday, talks aimed at delivering new Covid-19 aid gathered momentum in the U.S. Congress. According to reports, a bipartisan group of lawmakers worked on finishing a new $908 billion bill.

After several months of deadlocked negotiations between Democrats and Republicans, pressure has increased on policymakers to help businesses and people hit hard by the surging pandemic. A set of weak labour market indicators only rallied the demand.

 

U.S. bank shares lowered during the premarket trading

 

Shares of major U.S. banks including Wells Fargo & Co, Morgan Stanley, JPMorgan & Chase Co, Goldman Sachs Group Inc, and Citigroup Inc plummeted down between 0.4% and 1% in premarket trading.

 

Despite that, promising coronavirus vaccine updates from major drugmakers have boosted investor hopes for an economic recovery next year. It partially overshadowed concerns over a surge in U.S. infections, pushing Wall Street’s main indexes to record highs recently.

 

The Dow Jones futures tumbled down by 0.4% vs fair value. Meanwhile, S&P 500 futures plunged by 0.4% and Nasdaq 100 futures lowered by 0.1%.

 

On the other hand, Pfizer Inc surged forward by 0.4% after a top Indian government health adviser stated that the drugmaker has already applied for emergency use authorization of its coronavirus vaccine in the country.

 

On Thursday, a U.S. health advisory panel also plans to meet. They will discuss whether to recommend emergency use authorization of the vaccine developed by Pfizer and its German partner BioNTech SE.

 

Cisco Systems Inc dropped down by 0.5%. The company agreed to buy IMImobile – London-based cloud communications software company. The deal is valued at about $730 million, including debt. That news caused the stock’s decline.

 

FedEx stock jumped by 2.6% last week to 294.48. PayPal stock also climbed up by 3% to 217.77. The rally followed a 9.7% rise in the prior week and offered some early entries for PYPL stock. Apple also increased by 4.65% last week to 122.25. The stock also surpassed a 122.09 early entry. 

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