There's been a spike in coronavirus cases in California and Texas
Futures on the Dow Jones Industrial Average (DJI) are down over 800 points this morning, as Wall Street gets rocked by fears of a potential second wave of coronavirus amid a spike in cases from states such as California and Texas. Accordingto Johns Hopkins University, COVID-19 cases have crossed the 2 million mark, with over 112,000 deaths.
Nasdaq-100 Index (NDX) and S&P 500 (SPX) futures are also sharply below fair value, with the former set for an extensive pullback from Wednesday's record highs. The latest weekly jobless claims -- which fell by 1.54 million compared to the expected 1.6 million -- has done little to cheer themarket so far, while investors remain wary of the Federal Reserve's comments yesterday that the U.S. economy could contract by 6.6% in 2020. Oil prices are also sinking this morning, with July-dated crude last seen down 6.8% at $36.92 per barrel.
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The Fed's decision to keep interest rates near zero through 2022 sent stocks in Asia spiraling today. Japan's Nikkei suffered the worst loss, sliding 2.8%. Meanwhile, Hong Kong's Hang Seng was off 2.3%, despite shares of internettechnology company NetEase (NTES) surging in their Hong Kong debut. Elsewhere, South Korea's Kospi lost 0.9% and China's Shanghai Composite slid 0.8%.
For much of the same reason, stocks in Europe are off today as well, though fears of a second wave of COVID-19 infections also have investors on edge. At last check, France's CAC 40 is off 2.7%, followed closely by the German DAX, whichwas last seen down 2.6%. Meanwhile, London's FTSE 100 is currently trading 2.5% lower.