Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Stocks - U.S. Futures Higher Amid Optimism Over Virus

Published 04/06/2020, 07:01 AM
Updated 04/06/2020, 07:34 AM
© Reuters.

© Reuters.

By Peter Nurse    

Investing.com - U.S. stocks are set to open higher Monday, as investors take comfort from tentative signs the spread of coronavirus is slowing.

At 7:30 AM ET (1130 GMT), futures for the S&P 500 traded 92 points, or 3.7%, higher, futures for the Nasdaq up 281 points, or 3.7%. The Dow futures contract rose 769 points, or 3.7%. 

On Sunday, New York City, the epicenter of the U.S. outbreak, reported a drop in the number of new infections and deaths. President Donald Trump voiced hope coronavirus cases were "levelling off" in U.S. hotspots, saying he saw "light at the end of the tunnel".

However, Surgeon-General Jerome Adams warned on Sunday that the coming week will be "“the hardest and saddest week of most Americans’ lives.” The U.S. has reported over 337,000 confirmed infections from Covid-19, by far the highest tally in the world, and over 9,600 deaths.

In Europe, a week or so ahead of the U.S. in terms of the timing of the virus outbreak, figures from Spain, Italy, Germany and France suggested containment measures are limiting the spread of the disease. .

In corporate news , JPMorgan (NYSE:JPM) CEO Jamie Dimon said in his annual statement to shareholders that the economic slowdown will "include a bad recession combined with some kind of financial stress similar to the global financial crisis of 2008."

Dimon said the bank would offer measures such as waivers for late fees and a 90-day grace period for mortgage and auto loan payments.

American Airlines (NASDAQ:AAL) is likely to be in the spotlight after announcing that it’s suspending most of its flights to the New York region from Tuesday due to the coronavirus outbreak.

American will operate just 13 daily flights to LaGuardia, JFK and Newark airports through May 6, compared with 271 a year ago.

Zoom Video (NASDAQ:ZM) will also be in focus after Credit Suisse (SIX:CSGN) downgraded its recommendation on the video communications platform to underperform from neutral, saying it has the "best product at the right time" but is now expensive.

Additionally, Apple (NASDAQ:AAPL) announced it will soon be producing one million face-shields a week for medical workers.

Oil prices fell Monday as the OPEC+ group of major exporters delayed a scheduled meeting to Thursday.

The announcement of the meeting last week, to mediate a truce between Saudi Arabia and Russia in their price war, sent oil soaring last week.

The head of Russia's sovereign wealth fund, Kirill Dmitriev, said Russia and Saudi Arabia were "very, very close" to a deal, although President Trump's efforts to persuade U.S. companies to cut production came to nothing at the weekend. 

By 7:15 AM ET, U.S. crude futures traded 2.9% lower at $27.52 a barrel, while the international benchmark Brent contract fell 2.7% to $33.20.

Additionally, gold futures rose 1.4% to $1,668.30/oz, while EUR/USD traded at $1.0811, up 0.1%.

Latest comments

Wow, Do we have Vaccine now? No? Then virus spreading is declined in all US? No. Then Saudi and Russia made a deal of reduction 10bpd without US self cut? NO NO NO. Another BIG manipulation from Trump.
optimism about what? US is number 1 in the world in cov19 spread by far right now. stop making nonsense excuses on the markets volatility for god sake!
Buy more stocks.  Only game in town.  You don't even need an economy anymore and this stuff still runs 10% in two days.  Cash is trash.
This nonsense will ensure a violent revolution against the rich. As 10+ million Americans have 0 income coming in, Wall Street is creating hundreds of billions in wealth out of thin air. If this does not wake up the working class poor, I don't know what will. The stock market is nothing more than an illusion to keep the working poor hopeful of one day having riches. It will never happen of course. Because as you save your entire lifesaving for 30 years into the markets, it will all be wiped out in a single month while the same billionaires have shorted and taken it all.
SO why didn't you short it?  You had like 6 weeks of information about this virus coming out ahead of time?  Someone sounds lazy!
John Doe, I hope you don't get your wish.  If there were actually a revolution and riots on TV, this market might run up another 20% overnight in anticipation of the civil unrest recovery (because civil unrest is already priced in).
They do not care about the unemployment. At the weekend there were only bad news and for the oil news and less deaths they are celebrating... Ridiculous
ho ****. I thought wall Street guys are more educated. seems we can fool those guys with one day data..
One day time point and somehow the virus is all gone.  On Thursday, 426 people died in New York. 562 people died on Friday in New York.... On Saturday ZERO people died in New York...LETS CELEBRATE!!!!! VICTORY EVERYBODY THE VIRUS IS GONE... oh wait... Sunday 1204 people died in New York...  False Alarm everybody
did the market crash on the 1000s of shooting deaths or the 1000s of car accident deaths last year? on the 10s of 1000s of health related deaths. no. same thing. only this time we are in a shut down. that's the real issue. this will be short lived as well
if they don´t fix this soon... the only shortlived is going to be this recovery.
really bad example...you don´t paralice an entire city or a country for car accidents,  you also can´t catch a car accident. Imagine if i get hit by a car in the street and every person that passes for that same street in 9 hours get hit by a new car and 2% of that are fatal (except if you are older, then you get a 10% chance of dying).
Optimism? One day, ONE DAY of late figures and you guys think we're being saved... by who? The mother ship of aliens?? By the end of the week it'll look worse than ever and by the end of the next week we won't have much hope. There's going to be 200 to 2.6 million dead people in this country this year, and that's if people stop licking the floors and walls at their churches to prove they trust God! Those are moderate estimates of what can be one of the worst threats humanity has faced beside extinction level events.
haha one day everyone's fearful of the virus. the next day fears start to ease... then it's back to fear again
Why the still fly to NY it's lock.down. What the people have to still travel and spread it
it's stabilizing here in Italy. our efforts to lock down has curtailed the spread. economically it doesn't take a genius to understand if course it will hurt the economy but there's a lot going on behind the administration the little guy won't comprehend. rightly so. there will be I am confident a limited lift on lock down with criteria for workers. high risk groups will remain quaranteened in isolation. I think what Americans need to do is not become blinded by fake news or attempts to misconstrue the what is really going on beneath the scenes. I am favorable to see a while new shift on the political landscape shortly. the truths will begin to be revealed. the economy will come back. but with many reforms it will be much better. IMHO.
if by shift you mean some globalist nonsense, you can keep it.
optimism = cover for central banks to manipulate the markets
This is a pullback. SPX 2700 is a level to take short positions.
Here we go with Virus optimism again.... it’s the new “trade hopes”
The light at the end of the tunnel is a train. Sorry guys :)
The are trying to fool the small investor to buy so they can sell. Do not buy right now. Let them lose money.
they said the usd is getting stronger which means SELL. please understand the market term first. learn indices.
Sell for EURUSD
Lmao what optimism? The cases dropped because it was a Sunday, Monday it goes right back up. Stop trying to give false hope lol
That literally makes zero sense in a lockdown scenario!
has happned the past 3 weeks
Less planes in the skies, more airspace to fly drones 😂
now Trump is creating fake news, politicians are all the same
The real truth is that the world is not yet open for business, which will continue to stress credit markets, If you ain't got no revenue or income, you ain't got no money to pay bills. And dat be the truth. My guess is lower stock prices to come.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.