Wall Street’s main indexes were set to open higher today as signs of a working coronavirus vaccine raised hopes of a faster-than-expected economic rebound, with technology stocks bouncing back from steep losses this week.
On Monday dow futures pointed to a sharp decline at after daily coronavirus cases hit a record high Friday of 83,757. New infections on Saturday nearly matched that level. Cases are also spiking in Europe, with various degrees of restrictions going back into effect.
On Wednesday Dow Jones failed to secure a strong recovery after a new batch of quarterly earnings reports confirmed that the trade war has begun to eat into profit margins. Wall Street’s major indices remained little changed during the morning hours. The Dow Jones Industrial Average rose 7.64 points or 0.03% to 26,795.74, extending the nervous sentiment from a mixed futures session.
The Dow Jones Industrial Average traded 350 points higher, led by gains in Microsoft and Apple. The 30-stock index broke above 26,000 for the first time in nearly a month. The S&P 500 climbed 1.4% as the tech sector outperformed. The Nasdaq Composite gained 1.95%.
The Dow Jones rallied strongly yesterday after starting out the weak on a neutral note; this has confluent resistance in focus. The DAX is also nearing a cross-road of resistance it must overcome in this current sequence of strength if it is to continue higher. Crude oil contracts are stuck in the mud despite being oversold, may lead to more losses this week.
Dow Jones Industrial Average futures dropped 157 points as of 9:43 p.m. ET Thursday, implying an opening decline of 137.88 points for the benchmark index on Friday. S&P 500 and Nasdaq futures also pointed to declines for the two indexes when they start trading on Friday.