Traders wearing masks work inside the post office on the first day of person exchanges after closure during the outbreak of coronavirus disease (COVID-19) on the floor at the New York Stock Exchange (NYSE) in New York, United States , May 26, 2020.
Brendan McDermid | Reuters
US stock futures fell on Sunday night as coronavirus cases continue to rise in the United States, raising concerns about the reopening and economic recovery.
Dow Jones Industrial Average futures traded 1
Data collected by Johns Hopkins University showed that over 2.5 million cases have been confirmed in the United States. On Friday, 45,255 additional cases were reported, bringing the country’s seven-day average to over 41% from the previous week.
On Saturday, Florida reported a one-day record of 9,636 cases. The state reported an additional 8,577 on Sunday. Those figures were released after Florida again banned drinking in bars on Friday. Texas, another state that has seen record highs in coronavirus infections, withdrew some of its reopening measures on Friday. Arizona Governor Dough Ducey said Friday’s state cases “are growing rapidly across all age groups and demographics.”
Health and Human Services Secretary Alex Azar warned Sunday that the “window is closing” for the United States to curb the coronavirus epidemic.
“The reopening plans have stumbled – this not only in new virus hotspots like TX and FL, but it also has an impact on international travel – as daily cases of viruses in the United States have exceeded what everyone hoped was their peak in April, “wrote Julian Emanuel, chief shareholder and derivatives strategist at BTIG.
He also noted that the S&P 500 closed below its 200-day moving average – a level closely followed by traders – while Wall Street “stopped to evaluate not only the short-term implications of these risks.”
The major averages recorded their second weekly decline in three weeks. The Dow fell 3.3% last week, while the S&P 500 lost 2.9%. The Nasdaq Composite fell 1.9% last week. On Friday, the Dow lost over 700 points while the S&P 500 and the Nasdaq each dropped over 2.4%.
“The bearish argument for the current market is that the breadth has not strengthened during this consolidation period,” said Andrew Thrasher, founder of Thrasher Analytics, in a statement. “This is disheartening as multiple stocks have broken down together with the index.”
Thrasher noted that 3,150 will be a key level for investors to watch. “I’m less interested in risky activities until we get back to that level,” he said.
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