Stock futures fall as coronavirus cases continue to rise in the United States

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Traders wearing masks work inside posts, the first day of in-person trading since the closure during the epidemic of coronavirus disease (COVID-19) on the floor at the New York Stock Exchange (NYSE) in New York, United States, May 26, 2020.Brendan McDermid | Reuters

US equity futures fell on Sunday night as coronavirus cases continue to rise in the United States, fueling concerns over economic reopening and recovery.The Dow Jones Industrial Average futures traded 46 points lower, or 0.2%. S&P 500 futures fell 0.2% and Nasdaq-100 futures fell 0.3%.

Data compiled by Johns Hopkins University showed that more than 2.5 million cases were confirmed in the United States on Friday alone, an additional 45,255 cases were reported, bringing the country’s seven-day average to more than 41% compared to the previous week.

Florida reported a one-day record of 9,636 cases on Saturday. The state reported an additional 8,577 people on Sunday. These figures were released on Friday after Florida once again banned drinking from bars. Texas – another state that has experienced record peaks in coronavirus infections – on Friday canceled some of its reopening measures. Arizona Governor Dough Ducey said Friday’s cases in the state “are increasing rapidly across all age groups and all demographics.”

Health and Human Services Secretary Alex Azar warned on Sunday that the “window was closing” for the United States to curb the coronavirus epidemic.

“Reopening plans have failed – not only in new virus hotspots like TX and FL, but also on international travel – because the daily US virus cases have exceeded what everyone expected to be their peak in April,” said writes Julian Emanuel, chief equity and derivatives strategist. at BTIG.

He also noted that the S&P 500 had closed below its 200-day moving average – a level closely watched by traders – as Wall Street “stopped to assess not only the short-term implications of these risks.”

The main averages posted their second weekly decline in three weeks. The Dow Jones lost 3.3% last week while the S&P 500 lost 2.9%. The Nasdaq Composite fell 1.9% last week. On Friday, the Dow Jones lost more than 700 points while the S&P 500 and the Nasdaq each fell more than 2.4%.

“The bearish argument in the current market is that the breadth has not increased during this period of consolidation,” said Andrew Thrasher, founder of Thrasher Analytics, in a note. “It is disheartening, as more actions have collapsed with the index. ”

Thrasher noted that 3,150 will be a key level for investors to watch. “I am less interested in risky assets until we get back to this level,” he said.

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