Stock futures little changed as coronavirus cases continue to climb

Business

The “Fearless Girl” statue stands outside the New York Stock Exchange (NYSE) in New York, U.S., on Friday, June 12, 2020.

Jeenah Moon | Bloomberg | Getty Images

U.S. stock futures fell on Sunday night following a solid weekly performance on Wall Street amid lingering concerns about the coronavirus outbreak. 

Dow Jones Industrial Average futures were down 127 points, or 0.5%. S&P 500 and Nasdaq-100 futures slid 0.4% and 0.3%, respectively. 

The major U.S. stock average are coming off their fourth weekly gains in five weeks. Both the Dow and S&P 500 advanced at least 1% last week while the Nasdaq Composite advanced over 3%.

News of the Federal Reserve buying corporate bonds along with a record spike in U.S. retail sales lifted sentiment on Wall Street last. Expectations of an economic recovery also pushed up stock prices.

However, the number of newly confirmed coronavirus cases continues to increase, raising questions about the recovery.

“The areas of concern that weighed on stocks Fri afternoon were reinforced over the weekend,” Adam Crisafulli of Vital Knowledge wrote in a note. “Governments look set to proceed with reopening, but the real driver of growth will be behavioral normalization and that is very likely to be impended by the steady negative coronavirus news flow.”

The U.S. reported more than 30,000 additional coronavirus cases on Friday, the highest number of confirmed one-day infections since May 1, data compiled by Johns Hopkins University showed. Nevada, Florida, California and Arizona have also reported record-high single-day infections.

The recent coronavirus uptick in some states led Apple to reclose some of its stores. Meanwhile, a trade group said cruise lines voluntarily suspended all trips until Sept. 15.

“There’s a war going on between the bulls and bears, with each seizing every little data point to buttress their opposing arguments,” said Vito Racanelli, market intelligence analyst at Fundstrat Global Advisors, in a note.

“I do think that perhaps the market has gone past it’s recovery ‘straight up’ phase, as investors realized coronavirus (COVID-19) was not a world ender,” Racanelli said. “But the data remains mixed and COVID-19 fear remains strong, and it’s understandable.”

The S&P 500 has ripped more than 41% higher since hitting an intraday low on March 23. For the quarter, the broader market index is up nearly 20%.

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