· S&P closes lower as new COVID-19 cases surge
The S&P 500 closed lower on Wednesday as news of spiking pandemic data and the prospect of a new round of economic lockdowns dampened investor optimism over signs of economic recovery.
The S&P 500 and the Dow reversed earlier gains to snap a three-day winning streak. Tech shares led the Nasdaq to a modest gain.
The Dow Jones Industrial Average fell 170.37 points, or 0.65%, to 26,119.61, the S&P 500 lost 11.25 points, or 0.36%, to 3,113.49 and the Nasdaq Composite added 14.67 points, or 0.15%, to 9,910.53.
Worries over a resurgence in the pandemic’s spread persisted, as new coronavirus cases hit a record in Oklahoma just days before President Donald Trump’s expected campaign rally in Tulsa.
U.S. Federal Reserve Chair Jerome Powell wrapped up two days of congressional testimony, during which he pledged the central bank will use its “full range of tools” to help that recovery along. But Powell added, “It would be a concern if Congress were to pull back on the support that it’s providing, too quickly.”
On the economic front, while housing starts increased at a slower-than-expected pace in May, building permits saw a more robust rebound and applications for loans to purchase homes surged last week to a near 11-1/2-year high last week, according to separate reports from the U.S. Commerce Department and the Mortgage Bankers Association.
· Dow futures fall 100 points in overnight trading, pointing to more losses ahead
Stock futures fell in overnight trading on Wednesday as investors continued to monitor an uptick in new coronavirus cases amid the reopening economy.
Futures on the Dow Jones Industrial Average dipped about 120 points. The S&P 500 futures fell 0.2%, while the Nasdaq 100 futures were little changed. Trading volumes were thin early in the session.
The Dow and the S&P 500 snapped their three-day winning streak on Wednesday as stocks directly linked to a successful reopening underperformed, including airlines and cruise line operators. The tech-heavy Nasdaq Composite eked out a small gain, lifted by popular growth names such as Amazon and Netflix.
· European markets close higher as recovery hopes persist despite geopolitical tensions
European stocks closed higher on Wednesday as optimism persisted over a potential economic recovery, while markets also kept an eye on geopolitical tensions.
The pan-European Stoxx 600 provisionally closed up around 0.7%, with healthcare stocks adding 1.8% to lead gains as most sectors and major bourses ended in positive territory.
European market sentiment is bucking the trend seen in Asia overnight, where stocks traded lower following warnings from the International Monetary Fund (IMF) and on concerns surrounding geopolitical flare-ups between neighboring countries in Asia.
IMF Chief Economist Gita Gopinath cautioned Tuesday that “the forthcoming June World Economic Outlook Update is expected to show negative growth rates even worse than previously estimated.”
· Asia Pacific stocks dip as coronavirus concerns linger
Stocks in Asia Pacific dipped in Thursday morning trade as investors continue to weigh the implications of a recent uptick in coronavirus cases.
In Japan, the Nikkei 225 shed 0.32% in early trade while the Topix index declined 0.3%. South Korea’s Kospi also slipped 0.61%.
Over in Australia, the S&P/ASX 200 fell 0.47%.
Overall, the MSCI Asia ex-Japan index traded 0.28% lower.
Investor reaction to a recent surge in Covid-19 cases stateside will be watched on Thursday, with the number of coronavirus hospitalizations across Texas surging about 11% in a single day on Wednesday. A coronavirus model once cited by the White House also now projects projects more than 200,000 Americans could die of Covid-19 by Oct. 1.
Over in China, a recent jump in infections in Beijing led the city to cancel flights, close schools as well as block off some neighborhoods, according to Reuters.
Reference: CNBC, Reuters
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