US stock index futures fell sharply on Sunday evening as investors contested the reopening of states amid signs of conflict between China and the United States over Beijing’s management of the coronavirus outbreak, which was identified for the first time in Wuhan.
How do benchmarks work?
Futures for the Dow Jones Industrial Average
were at the top of 228 points, or 1%, down to 23,391, those of the S&P 500 index
were down 26.70 points, or 1%, to 2795, while the Nasdaq-100 futures
fell 87 points, or 1%, to 8,631.
Major benchmarks posted losses for the week after a sharp decline on Friday with the Dow
and S&P 500
lost 0.2% and the Nasdaq Composite Index
ending the week down 0.3%.
What drives the market?
An attempt to restart the economies of dozens of American states was not without problems, in a warmer climate that has drawn larger gatherings of people to the streets amid the worst viral epidemic in more than a century .
Some 51 subpoenas have been issued by New York police, the Wall Street Journal reported, the majority for breaches of social ties, in the state where there were some 70,000 hospitalizations for COVID-19, the greatest number of all states.
President Donald Trump, responding to questions from a virtual town hall meeting broadcast on Sunday evening by Fox News, suggested there was a strong need to reopen businesses across the country, which have been closed due to measures in place to slow down the spread of deadly disease.
“We need to reopen it safely but as quickly as possible,” said Trump.
Trump’s comments come in as the economy is contracting, first quarter data showing a 4.8% drop in the annual growth rate, while more than 30 million people and that figure asked unemployment benefits since the end of February.
Against this backdrop, markets have managed to rebound from hopes of success with experimental treatments for the deadly disease, including Gilead Sciences. ”
remdesivir and signs of stabilization of new cases.
However, major stock indexes broke a two-week winning streak on Friday, as markets digested recent moves and the United States continued to blame China for handling the pandemic.
US Secretary of State Mike Pompeo said in an interview with ABC “This Week” on Sunday that he saw “huge evidence” that the virus came from a laboratory in Wuhan, China.
Trump when he appeared at Fox on Sunday night said, “I think they made a horrible mistake and they didn’t want to admit it. “
Meanwhile, investors can also focus on remarks made by Warren Buffett on Saturday at Berkshire Hathaway
annual meeting of shareholders, which has been webcast. The revered investor, 89, has taken a reassuring stance, but also noted that the virus is creating a lot of uncertainty in the financial markets. “We have faced more difficult problems, and the American miracle, American magic, has always prevailed, and it will do it again,” said Buffett.
The billionaire investor, however, admitted to having emptied his assets of airlines, in particular Delta Air Lines Inc.
American Airlines Group Inc.
United Airlines Holdings Inc.
and Southwest Airlines Co.
Which titles are targeted?
Shares of Delta, American Airlines, Southwest and United Airlines will be the center of attention on Monday, as will the exchange-traded fund focused on airlines ETF Global Jets US
the aeronautical and defense contractor may also be in the spotlight after Buffett said the company was “difficult to assess” on Saturday.