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Stock futures rebound slightly after Dow’s worst day since October

Stock futures rose in early Tuesday morning trading after concerns over the spread of the Covid-19 delta variant dumped stocks to investors, especially those directly affected by pandemic regulation.

The Dow Jones Industrial Average futures rose 72 points. Both S & P 500 futures and Nasdaq 100 futures traded at slightly higher prices.

Wall Street was hit by a sharp sell-out during normal trading hours as investors feared that the rapidly spreading delta coronavirus mutant could hinder economic recovery. The Dow Jones Industrial Average fell by more than 700 points, marking the worst day since October. Meanwhile, the S & P 500 fell 1.6% and the Nasdaq Composite fell about 1.1%.

“The fear of stagflation is an investment if consumer prices continue to rise while the resurgence of COVID infection slows the economy,” said Peter Essel, head of investment management at Commonwealth Financial Network. It will be a big concern for the house. “

In the United States, new Covid cases are rebounding, primarily as delta mutations spread among unvaccinated people. In the United States, there are an average of about 26,000 cases per day over the past seven days, more than double the average of a month ago. According to CDC data..

Stocks directly related to the success of the reopening, such as airlines and cruise ship operators, were struck by the sale. carnival And Norwegian Cruise Line Each fell by more than 5%, Royal Caribbean It fell by 4%.Share United Airlines It fell 5.5%.

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Energy and finance in the classic circulation sector were the biggest losers, down 3.6% and 2.8%, respectively. The Treasury yield for 10 years fell by 12 basis points to 1.17%, the lowest level since February, raising concerns about a slowdown.

Still, even after the fall on Monday, the S & P 500 is just 3.1% below last week’s record hit.In addition, the equity benchmark fell below the 50-day moving average during Monday’s rout, but eventually Closed beyond its major technical level, It offers some hope to investors looking for a rebound.

Chris Zaccarelli, CIO of the Independent Advisor Alliance, said: “We don’t believe that is the case, the economy has fully recovered, it has returned to its former growth trajectory, and most of the sound-cycle companies are associated with the aviation, travel and leisure industries.”

IBM shares surged 3% on Monday’s extended deal after enterprise technology and service providers reported second-quarter results Exceeded expectations And it showed the strongest profit growth in three years.

Stock futures rebound slightly after Dow’s worst day since October

Source link Stock futures rebound slightly after Dow’s worst day since October

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