Inventory futures sank Friday morning as buyers digested information of President Donald Trump testing constructive for COVID-19. Early Friday morning, the president revealed through Twitter that he and the primary girl had contracted the virus.
The announcement has triggered a ripple in markets to this point sinking each US inventory futures and commodities like gold and oil as nicely. This information brings the coronavirus again into the forefront for buyers, difficult an opposing narrative of restoration and reopening.
The Nasdaq has taken the most important hit to this point, down as a lot as 2.5% this morning. Right here’s a have a look at main US markets this morning:
- Micro E-mini S&P 500 Futures (MES) | -0.64%
- Micro E-mini Nasdaq Futures (MNQ) | -1.54%
- Micro E-mini Dow Futures (MYM) | -0.5%
The information additionally fuels uncertainty surrounding the extremely anticipated US presidential election on November third and a few analysts really feel it’ll spike volatility within the close to time period.
One issue buoying markets is the progress in Washington towards one other coronavirus aid invoice which is able to embrace one other stimulus bundle. Some analysts really feel that buyers have turn into desensitized to coronavirus-related information and can focus extra on the stimulus bundle. Traders extremely anticipate the result, which is bound to be a figuring out issue for total market sentiment.
The chart above, created 100% FREE utilizing NinjaTrader, shows every day worth motion in Micro E-mini S&P 500 futures since June. Worth is presently close to the 50-day SMA, a recognized inflection stage amongst technical analysts.
Merchants ought to maintain threat administration prime of thoughts when buying and selling unpredictable markets and take applicable measures to guard funding capital.