Jakarta, CNBC Indonesia – The United States (US) futures exchange declined on Sunday night (6/28/2020), influenced by the rapid increase in new cases of the corona virus (COVID-19) in the US.
Dow Jones Industrial Average futures are trading 46 points lower or down 0.2%. While S&P 500 futures were down 0.2% and Nasdaq-100 futures were down 0.3%.
The decline occurred after data from Johns Hopkins University showed there were more than 2.5 million COVID-19 cases that have been confirmed throughout the US. On Friday alone, there were 45,255 additional cases reported.
On Saturday, Florida (FL) reported a record 9,636 new cases in one day. The state reported an additional 8,577 other cases on Sunday. The figures were released after Florida again banned community gatherings at the bar on Friday, CNBC International reported.
Another US state that has recorded a record surge in corona infection is Texas (TX). On Friday, Arizona Governor Dough Ducey said that new cases on Friday in the state “are growing fast in all age groups and demographics”.
“The reopening plan stumbled – this is not just in hotspot “new viruses such as TX and FL, but also have an impact on international travel – because the case of US viruses every day goes beyond what was originally expected to be its peak in April,” wrote Julian Emanuel, head of equity and derivation strategy at BTIG.
“The S&P 500 closed below the 200-day moving average – a level closely watched by traders – when Wall Street stopped to assess not only the short-term implications of this risk.”
The major index averages have posted their second weekly decline in three weeks. The Dow dropped 3.3% last week while the S&P 500 dropped 2.9%. Nasdaq Composite fell 1.9% last week. On Friday, the Dow also dropped more than 700 points while the S&P 500 and Nasdaq each fell more than 2.4%.
“The bearish argument for the market at this time is broadly not strong during this consolidation period,” said Andrew Thrasher, founder of Thrasher Analytics, in a note. “That is discouraging because more shares have dropped along with the index.”
Thrasher said that 3,150 would be a key level that investors would watch. “I am less interested in risk assets until we return to that level,” he said.
