U.S. equity futures plummeted down on Thursday. The S&P 500 Index lowered by 0.6%. Coronavirus cases continue rising, causing investors uncertainty. Traders weighed the prospect of more stimulus against a slew of earnings as they are unsure that the economic rebound will last long at this rate.
After rising on Wednesday, contracts on the three main American equity gauges pointed to modest losses on Wall Street. The Federal Reserve promised to use all of its tools to support economic recovery.
Several European stocks declined as well. Germany’s DAX Index lost 1.3%. Car-makers and banks dragged the Stoxx Europe 600 Index lower. It tumbled down by 0.6%.
However, some stocks gained modestly. The total SE soared after posting better-than-expected results thanks to trading gains that offset a fall in oil prices. Anheuser-Busch InBev NV also jumped on results that showed a return to growth following the reopening of bars in several markets.
On the other hand, the MSCI Asia Pacific Index fell slightly by 0.1%. Alphabet Inc., Amazon.com Inc., and Apple Inc. are due to report earnings later.
On Thursday, oil plunged below $41 a barrel after data showed the biggest decline in U.S. crude inventories this year. But the dollar edged up due to investors seeking safety against a coronavirus resurgence worldwide.
Governments have already doubled down on the $11 trillion worth of stimulus along with unprecedented central bank support unleashed since the pandemic crisis began. The Fed rolled out several emergency lending programs geared toward fostering liquid trading conditions in markets. Furthermore, the agency has kept rates pinned near zero since the outbreak’s onset in March.
The Fed committed to doing whatever it can to support the economy as well as keep the liquidity environment very accommodative – stated Margaret Yang, the strategist at DailyFX. She added that the results on Thursday from large tech companies would be critical to market sentiment.
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