US shares appeared poised for an additional sharp selloff Wednesday amid a continued surge in coronavirus infections that’s proven no indicators of slowing down quickly.
Futures contracts tied to the Dow Jones industrial common have been down 454 factors, or 1.6 %, at 26,911.00 as of 6:55 a.m. with each COVID-19 instances and hospitalizations on the rise throughout the nation.
That put the blue-chip index on tempo for its third straight day of losses together with the benchmark S&P 500, whose futures have been down 1.4 % as of 6:56 a.m. Futures for the tech-heavy Nasdaq 100 have been lately off about 1.1 % following a 0.8 % acquire on Tuesday.
The US has posted a document common of 71,532 new coronavirus instances over the previous seven days because the lethal pandemic climbed towards a 3rd peak, in accordance with information from the COVID Tracking Project. The variety of folks presently hospitalized with the virus has additionally risen sharply over the previous month to 44,212 as of Tuesday, the info present.
The spike has raised fears in regards to the return of lockdown measures like people who kneecapped the worldwide economic system within the spring. Struggling European international locations have imposed restrictions in current weeks, and Illinois officers will cut off indoor restaurant and bar service in Chicago on Friday amid a surge in infections there.
European markets additionally plummeted Wednesday following experiences that France may impose a nationwide lockdown to stem the tide of the virus. Paris’s CAC 40 index was lately down 2.6 %, whereas London’s FTSE 100 was off 1.5 %.
“Mainland European markets are as soon as once more on the forefront of a collapse in fairness valuations, with a second bout of nationwide lockdowns elevating the possibility of a double-dip recession,” mentioned Joshua Mahony, senior market analyst at IG. “Whereas regional motion helped alleviate a lot of the destructive market influence in current months, the sharp ascent in COVID instances all through Europe clearly requires extra dramatic measures.”
The drop in shares got here alongside a leap within the CBOE Volatility Index, referred to as Wall Avenue’s “worry gauge.” It had climbed to 36.35 as of 6:56 a.m., reaching its highest stage since early September because the Nov. 3 presidential election approached.
With Put up Wires