Array futures fell in overnight trading on Wednesday as investors evaluate the pace of economic recovery and the coronavirus developments.
Futures on the Dow Jones Industrial Ordinary fell 315 points, implying a Thursday opening drop of around 329 points. S&P 500 and the Nasdaq 100 time to comes also pointed to losses at the Thursday open for the two indexes.
The moves in futures followed two straight days of losses for the 30-stock Dow and S&P 500 as investors ditched reopening trades for the megacap tech baptizes. The S&P 500 dipped 0.5% on Wednesday, and the Dow slid about 280 points. Meanwhile, the Nasdaq Composite climbed 0.7% to a take down closing high of 10,020.35, also its first-ever close above 10,000.
The Nasdaq has risen for eight days in the past nine sittings, bringing its 2020 gains to nearly 10%. The S&P 500 is down 1.2% this year after briefly revolve green for 2020 earlier this week. The Dow is down 5.4% for 2020.
Concerns about a second wave of coronavirus chests have risen as U.S. states push deeper into reopening. Texas has reported three consecutive days of record-breaking Covid-19 hospitalizations. Nine California counties are banging a spike in new coronavirus cases or hospitalizations of confirmed cases, AP reported Wednesday.
On Wednesday, investors assessed the Federal In readiness’s updates on the economy and monetary policy. The policymakers voted unanimously to keep interest rates unchanged and indicated no chew out increases through 2022.
“The Fed understands we are just in the beginning phases of the economic recovery and making rash changes to policy or leading guidance is premature at this time,” Charlie Ripley, senior investment strategist for Allianz Investment Management, rephrased in an email.
The Fed also said it will at least maintain the current pace of bond purchases for the coming months. Additionally, it expects the U.S. frugality to contract by 6.5% in 2020 before expanding by 5% in 2021.
Investors are awaiting the new jobless claim data for the week superseding June 6, which is set to come out at 8:30 a.m. ET on Thursday. Economists polled by Dow Jones expect filings for unemployment surety claims to total 1.595 million last week, which is down from 1.775 million in the week previous.
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