Fears of Increased COVID Infections Lead to Uneven Opening on Wall Street.

by Wall Street Rebel | Michael London | 11/19/2021 9:28 AM
Fears of Increased COVID Infections Lead to Uneven Opening on Wall Street.

Fears that the virus and limitations would spread throughout Europe again slammed European markets hard this morning.

 

Most U.S. stock futures were down on Friday, with blue-chip stocks projected to extend their losses from Thursday as rising concerns over widespread COVID-19 lockdowns in Europe stoked fears of more restrictions outside of Europe.

A total lockdown was implemented by the Austrian government on Monday, wiping away early gains in the Dow and S&P 500 futures due to the news of COVID-19 spreading around Europe.

A minimum of 10 days will be required for the lockdown, with the potential of an additional ten days extension. The lockdown will apply to both vaccinated and unvaccinated persons.

As a result of lower vaccination rates in the United States compared to those in Europe, "the news is hitting European markets hard today as worries build that the virus and travel restrictions may spread across the continent again," according to Jim Reid, the chief economist at Deutsche Bank. "The United States of America may throw a curveball," he said.

The Nasdaq futures were moving higher on Thursday, propelled higher by a jump in businesses associated with the "stay-at-home" trade, which has dominated the first half of 2020.

Investors seeking safety in safe-haven assets drove down Treasury rates, which had increased in response to rising inflation fears, to record lows early Friday.

Brent Crude (CL=F) plummeted by more than 3% as investors were concerned that lockdowns would lead to a reduction in energy usage.

A decrease in Cisco Systems' stock contributed to the Dow Jones Industrial Average's (DJI) loss of 230 points (0.2 percent) on Thursday (CSCO).

The computer networking provider disclosed its quarterly results after the market closed on Wednesday, citing component shortages and a weaker-than-expected forecast from the company.

The company's results fell short of expectations, according to analysts.

The S&P 500, on the other hand, gained ground, while the tech-heavy Nasdaq — boosted by gains in Tesla (TSLA) and Nvidia (NVDA) — finished the day at record highs.

There are no economic statistics slated for publication on Friday. Still, investors will be keeping a close eye on Washington, where the House of Representatives is expected to pass President Joe Biden's "Build Back Better" legislation, which would help the country rebuild its infrastructure.

According to the bill, the proposed spending for education, healthcare, and environmental protection totals $1.85 trillion over the next ten years, which President Barack Obama signed.

The candidacy of Vice President Joe Biden to be the chairman of the Federal Reserve is also a source of speculation for the financial markets.

During a press conference on Tuesday, Vice President Biden said that he expects the Federal Reserve to announce a candidate for chairman of the board within "the next four days."

Whether to re-appoint current Fed chairman Jerome Powell or pick Fed governor Lael Brainard as Powell's successor seems to be a port of contention in the White House.

 

                      European Countries Reintroduce Lockdowns As Covid Cases Surge

 

 

 

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