Stock futures point to sell off on rising virus cases

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U.S. equity futures fell on Wednesday as rising coronavirus infections shook investor confidence in the global economic recovery and sent them to the safety of Treasuries and the dollar.
Futures contracts linked to the S&P 500 fell 1.4%, suggesting that the broad index is falling for its third consecutive session. The benchmark index slipped more than 5% from its record closing level in early September.
Markets fell this week due to a series of uncertainties. The worsening number of coronavirus cases may make stricter restrictions in the United States and Europe imperative, which could spell a setback for the fragile economic recovery. New cases in the United States rose to above 70,000 as states across the country continued to report high levels of new infections.
“A month ago the market narrative was quite that lockdowns would be limited and targeted, and therefore have less of an impact on the economy,” said Hugh Gimber, global market strategist at JP Morgan Asset Management . “But now what we’re seeing are broader concerns that lockdowns could be broader and have a much broader impact.”
The United States reported more than 73,200 new cases on Tuesday, the second consecutive daily increase, according to data compiled by Johns Hopkins University.

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