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U.S. stock futures are cautiously higher ahead of Tuesday’s trading session.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| I: DJI | AVERAGES DOW JONES | 30223.89 | -382.59 | -1.25% |
| SP500 | S&P 500 | 3700.65 | -55.42 | -1.48% |
| I: COMP | NASDAQ COMPOSITE INDEX | 12698.447144 | -189.84 | -1.47% |
US stocks fell from their recent highs on Monday, the first day of trading in the new year, with the big swings returning to Wall Street at the beginning of a year in which the dominant expectation is that a powerful economic recovery sweep the world.
“With the average seven-day new cases still hovering in the 600K zone globally, few expect the market to be spared the resurgence of COVID-19 fears,” said Jingyi Pan, IG’s senior market strategist in Singapore.
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“Certainly, with the amalgamation of factors ranging from the UK’s third national blockade announcement, hospitalizations in the US reaching a record high and Tokyo reflecting on a state of emergency, all this was evidence of the still violent pandemic, inducing the climate of risk to start the year for US indices, “said Pan.
The S&P 500, which ended 2020 at a historic high, fell 1.5% after falling to 2.5%. It was the biggest drop in the benchmark since the end of October. Technology companies accounted for a large part of sales, along with industrial actions, communication services, health and others. Only the energy sector of the S&P 500 managed to make a profit.
US stock futures are cautiously higher ahead of Tuesday’s trading session. (Nicole Pereira / New York Stock Exchange via AP)
The sale comes as coronavirus cases continue to rise at frightening rates around the world, threatening to bring in more blocking orders that would punish the economy. The worsening of the numbers also increases the possibility that Wall Street is overly optimistic about the great economic recovery it predicts because of the COVID-19 vaccines. The second round of the next election to determine which party controls the Senate may also be contributing to volatility.
“We had an unstable start to the year here,” said Lindsey Bell, chief investment strategist at Ally Invest. “Investors are looking for a reason to keep profits. The sale is probably a little exaggerated. “
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The S&P 500 fell 55.42 points to 3,700.65. The Dow Jones Industrial Average also fell from its record set last week, dropping 1.3% to 30,223.89. At one point, it dropped 724 points. The high-tech Nasdaq compound lost 1.5% to 12,698.45.
Small business stocks, which have been making solid gains in recent weeks, have also declined. The Russell 2000 index of smaller companies fell 1.5% to 1,945.91.
Investors have been hoping that vaccines will allow daily life around the world to slowly return to normal. This helped trigger a recent recovery for business actions related to travel, smaller companies and other industries left behind during much of the pandemic.
In the United States, regulators have already approved two other vaccines. China gave the green light last week for its first internally developed vaccine. Others are also being tested.
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Asian equities were mixed on Tuesday, with Japanese equities echoing retreats on Wall Street, while other regional indexes recovered past losses amid continuing concerns about the increase in coronavirus cases.
Japan’s Nikkei 225 index fell 0.4% to 27,159.27 as the government prepared to declare a state of emergency in Tokyo and several neighboring areas.
Australia’s S & P / ASX 200 decreased by less than 0.1% to 6,681.90. South Korea’s Kospi gained 1.0% to 2,975.05, while Hong Kong’s Hang Seng added 0.4% to 27,577.74. Shanghai Composite rose 0.5% to 3,521.75.
Japan’s prime minister said the government is considering declaring a state of emergency to help stem the spread of infections. The change is expected this week. Tokyo Governor Yuriko Koike and the governors of Saitama, Chiba and Kanagawa asked the national government over the weekend to declare the emergency after the capital recorded a daily record of 1,337 cases on New Year’s Eve.
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In the energy trade, US reference oil lost 20 cents to $ 47.42 a barrel in e-commerce on the New York Mercantile Exchange. It fell 92 cents to $ 47.62 on Monday.
Brent crude, the international standard, fell 26 cents to $ 50.83 a barrel.
In currency trading, the US dollar fell to 102.95 Japanese yen, from 103.13 yen on Monday night. The euro cost $ 1.2269, compared to $ 1.2249.
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AP Business writers Stan Choe and Alex Veiga contributed.