European Stocks and U.S Equity Futures are bearish as Covid-19 Cases Increase Globally
European Stocks and U.S. equity futures dropped on Friday as Covid-19 cases and global lockdown worries increases, and as optimism surrounding Biden’s inauguration dies down.
Europe’s Stoxx 600 fell by 0.9%, Germany’s DAX fell 0.8%, U.K’s FTSE 100 fell 0.5% and France’s CAC 40 fell 1%.
Despite the S&P 500 and Nasdaq’s amazing record heights, the futures market pointed to a pullback as S&P futures fell 0.6%, Nasdaq fell 0.5% and the Dow futures dropped over 200 points. Down to what is driving the market.
The drop came partly amid signs that the republicans will put up resistance to Bien’s $1.9 trillion fiscal stimulus proposal. However, worries about the rate of the virus spread, the extension of lockdowns and the imposition of fresh lockdowns and its effects on the economy seems to be what is paramount in the minds of investors and traders alike.