The Dow jones and the S&P 500 snapped their three-day winning Wednesday, as stocks directly linked to the success of a re-opening under-performed, including the airlines and the operators of the cruise line. The tech-heavy Nasdaq Composite eked out a small gain, lifted by popular growth names such as Amazon and Netflix.
Investors turned more cautious as increases in coronavirus cases, cast doubt on a swift economic recovery. Several states in the united states are experiencing a resurgence of infections. Arizona reported a record number of new confirmed cases, while Texas has seen a child of 11% of the daily spike in hospitalizations for patients with Covid-19 Wednesday.
“We think the market is priced quite a bit of good news, and the rally is likely to take a pause in the coming months, as the recovery evolves,” Wren Scott, Wells Fargo’s senior global market strategist, said in a note. “We expect volatility in the coming months, as we evaluate how the openings are going and how consumer spending is progressing. ”
New unemployment insurance claims data is set to come out Thursday morning, offering an update on the pace of the labour market to the output of the pandemic. Economist surveyed by Dow Jones expected a total of 1.30 million of new deposits for the week ending the 13 June, a decline of 1.54 million the previous week.
During this time, the parts of the country have continued to facilitate the locking of the restrictions. The City of New York is on track to proceed with Phase 2 of its re-opening on Monday, which includes retail stores, hair salons, and select office spaces, Governor Andrew Cuomo said.
While the market remained unstable, major stock averages are set to post solid gains this week, after a marked decline in the week before. The 30-stock Dow and the S&P 500 gained more than 2% each this week, so far, while the Nasdaq rose 3.3%.
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