The Nasdaq-100, which is made up of the 100 largest non-financial companies in the Nasdaq Composite, traded briefly above 11,000 for the first time before dropping 2.2%.
“I think what we’re seeing here is the push-pull going on between the growing cases of coronavirus to the reopening states and the market is struggling with balance and how it will work over time”, Susan Schmidt , head of US stocks at Aviva Investors, told CNBC.
Earlier in Monday’s session, stocks were helped by news that Pfizer and German biotechnology BioNTech SE have obtained accelerated FDA designation for two of the companies’ four coronavirus vaccine candidates.
Cases continued to reach record levels across the United States over the weekend as a number of critical states continue to see deaths from Covid-19 gradually increase, according to data compiled by l ‘Johns Hopkins University. California governor Gavin Newsom orders certain interior businesses – including restaurants, bars, cinemas and museums – to shut down statewide as new cases continue to escalate .
Sentiment on Wall Street also gained momentum when Pepsico announced better-than-expected profits on Monday.
Bank profits started Tuesday with Citigroup, JPMorgan Chase and Wells Fargo, all ready to report before the opening bell.
While corporate profits are expected to fall 44% in the second quarter, the financial sector is expected to experience a more than 52% drop in profits, according to Refinitiv.
“What is so influential in reports from banks at the start of the earnings season at times like these is that we really count on the views of the bank management team on what is going on. going on, ”added Schmidt. “Banks are the foundation of our American economy. They are there to provide loans to small businesses and to manage personal deposits. ”
Delta Air Lines and Fastenal also released their quarterly results on Tuesday.
A key indicator of inflation trends, the consumer price index (CPI) will be published Tuesday at 8:30 am by the Labor Department. An economist interviewed by Dow Jones estimates that consumer prices in the United States rose 0.5% in June, according to economists interviewed by Dow Jones.
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