On Monday, US stock indices opened sharply lower, continuing the sale from last week due to fears of the second wave of the epidemic.
At 7:00 a.m. EST, S&P 500 futures were trading lower by 65 points or 2.2%, futures on the Nasdaq 100 were down 159 points, or 1.7%, and futures The Dow contract fell 656 points or 2.6%.
Several states, including some of the most populous, have reported a recent surge in new cases of Covid-19, as social distance measures across the country have been weakened.
Over the weekend, signs of a resumption of disease also appeared in China, where the virus first appeared in Wuhan, as well as in Japan, respectively, the second and third largest economies in the world.
The Dow Jones and S&P 500 indices lost 5.5% and 4.7% last week, while the NASDAQ Composite lost 2.3%. All three major stock indexes witnessed the worst week since March 20.
This week, the US Fed Chairman Jerome Powell will be of great interest before the Congress, which will be held on Tuesday and Wednesday.
Last week, the Fed announced that it plans to provide emergency support for the economy for many years, which will have a long and difficult recovery from the coronavirus epidemic, and predicts a contraction in the economy this year by 6.5%, and unemployment at the end of the year – 9.3%.
Among the corporate news, the oil sector will be in the spotlight after BP announced that it expects a decline in assets of up to $17.5 billion. According to company forecasts, the pandemic will have a lasting impact on the global economy and could lead to a decrease in energy demand over a long period.
Retailer Walmart and the online Shopify platform will also be in the spotlight after the weekend announces their strategic partnership, as the retailer seeks to strengthen its position in e-commerce.
Meanwhile, the bankrupt car rental company Hertz Global has filed an application for the issue of ordinary shares of up to $500 million, which will be a test of the demand of retail investors. Hertz shares, which rose from 83 cents to $5.53 in a few days, showed a 20% decline at the premarket.
Oil sold out on Monday as a new wave of coronavirus infection reinforced fears that a resurgence of the virus could affect recovery in fuel demand.
WTI crude oil prices fell 2.2% to $ 35.47 a barrel, while Brent crude futures fell 1.2% to $ 38.25.
Gold futures fell 1.4% to $ 1,713.75 an ounce, while the EUR/USD pair was trading at 1.1244, down 0.1%.