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Wall Street Expects a Lower Open

Wall Street’s main indexes were set to open lower in the stock market on Wednesday. This was a day after the Nasdaq hit another closing high.

Investors assessed the risk to the domestic economy from a rise in coronavirus cases in several U.S. states.

Washington state has made face masks mandatory in public places. Many other U.S. states saw record case numbers, including Arizona and Texas. Restrictions that were meant to slow the virus spread were lifted early.

The two weeks ahead could be critical in containing the outbreak. This was a statement from Anthony Fauci, top U.S. infectious disease official.

Due to a slate of better-than-expected economic data, easing lockdowns and massive stimulus measures have powered the Nasdaq to an all-time high. It has put the benchmark S&P 500 on track for its best quarterly performance since 1975.

Dow Jones Industrials and the S&P 500 were about 7% and 11.5% away from their February record closing highs.

Allen Sukholitsky is the chief macro strategist at Xallarap Advisory in New York. When you have a market that has rebounded so exceptionally quickly from the lows, he says, these sort of day-to-day reversals could be investors taking a breather really. 

The hopes of swift recovery are absolutely intact on Wall Street. At least, through to the end of the year, the market is going to move considerably higher.

At 8:18 a.m. ET, Dow e-minis fell by 186 points, or 0.71%. S&P 500 e-minis were down 17.75 points, or 0.57%. Moreover, Nasdaq 100 e-minis were down 21.25 points, or 0.21%.

Stocks News on Wall Street

U.S. airlines, resorts and cruise operators are among the worst hit by the pandemic’s fallout. They declined with United Airlines Holdings Inc, Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd. They did fall down between 3% and 4% in premarket stock trading on Wall Street.

Stocks news reports Carnival Corp declined 4.9% as ratings agency, Standard & Poor’s, downgraded its bonds to junk status. It forecasted aa continued weak demand for the cruise industry.

Moreover, the shares of U.S. lenders, which tend to outperform when the outlook for the economy improves, also fell. Bank of America Corp, Citigroup Inc, and Goldman Sachs fell between 0.7% and 1.2%.

High-flying technology companies Apple Inc and Microsoft Corp eased from record levels. This was after powering the tech-heavy Nasdaq to a fresh peak in the previous session.

In earlier news on Wall Street, in the throes of the pandemic panic, more traders turned to a tech-powered tool. This was intended to price large swaths of corporate bonds in one fell swoop.

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