# Dow futures down over 200 points as stocks aim for fourth straight weekly loss
Table of Contents
“#
Dow futures down over 200 points as stocks aim for fourth straight weekly loss
”
Stock futures lost ground Friday, with major benchmarks in danger of logging a fourth consecutive weekly loss as worries grow over the economic outlook in the absence of renewed aid from Washington, jitters over the November presidential election and rising COVID-19 infections in the U.S. and Europe.
What are major benchmarks doing?
Futures on the Dow Jones Industrial Average
YM00,
were down 219 points or 0.8%, at 26,496, while S&P 500 futures
ES00,
fell 23.25 points, or 0.7%, to 3,214.75. Nasdaq-100 futures fell 41.50 points, or 0.4%, to 10,850.25.
Stocks rose Wednesday in a choppy session, with the Dow
DJIA,
gaining 52.31 points, or 0.2%, to close at 26,815.44, while the S&P 500
SPX,
rose 9.67 points, or 0.3%, to 3,246.59. The Nasdaq Composite
COMP,
finished at 3,246.59, up 9.67 points, or 0.3%.
What’s driving the market?
“Overall, risk sentiment is still raw after investors had to bear witness to the steep declines in U.S. equities this month, as benchmark indices are set to post their first monthly loss since March,” said Han Tan, market analyst at FXTM, in a note. Although the Cboe Volatility Index
VIX,
“appears relatively tame compared to the spike earlier in the month, market participants must remain vigilant and brace for potentially more volatility over the near-term.”
The VIX, which reflects investor expectations for S&P 500 volatility in the coming 30 days, stands just below 30, above its long-term average near 20, after jumping to nearly 36 earlier this month as tech stocks kicked off a sharp market pullback.
The tech-heavy Nasdaq Composite tumbled from a record into correction territory — a drop of 10% from a recent peak — in just three days early this month. The S&P 500 on Wednesday finished 9.6% below a record close hit in early September before rebounding modestly Thursday.
Rising COVID-19 cases have led to the return of some lockdown measures in European countries, while rising cases in parts of the U.S. have highlighted worries about the potential of another wave in the U.S. this fall. Signs of a slowing of the economic rebound from the pandemic-induced sudden stop in March have undercut sentiment.
Investors continue to watch Washington for signs of progress in long-stalled talks on another round of spending aimed at cushioning the blow of the pandemic. House Democrats on Thursday were preparing a $2.4 trillion aid package that includes a number of items seen having bipartisan support, including direct payments to households, the Paycheck Protection Program, a revival of a federal add-on to state unemployment benefits, as well as a renewal of aid to airlines and money to help restaurants stay open.
But analysts said the path to an agreement remained unclear, while jitters are rising over the prospect of a contested presidential election on Nov. 3 that could leave the outcome of the contest in limbo for weeks.
Read: Why investors are starting to freak out about the 2020 presidential election
Related:2000 redux? Stock-market election fears have investors revisiting Bush-Gore battle
That said, “constructive news about Democrats and Republicans working on a compromise appears to be the most-likely trigger for market sentiment to take a decisive turn for the better,” wrote analysts at UniCredit Bank. “Other potential triggers are few and far between: COVID-19 infection cases are surging so rapidly that it will take more than just a few days for any decline in infection rates to appear sustainable.”
Which companies are in focus?
-
Shares of Costco Wholesale Corp.
COST,
+0.68%
were down 2.7% in premarket trade despite topping earnings and revenue expectations for its fiscal fourth quarter.
By
William Watts
For forums sites go to Forum.BuradaBiliyorum.Com
If you want to read more News articles, you can visit our News category.
