The trader is working on the floor of the New York Stock Exchange (NYSE) on November 8, 2021.
Brendan MacDermid | Reuters
US stock futures fell on Thursday night trading as investors prepared to shorten trading days amid new Covid concerns about a new variant found in South Africa.
The Dow Jones Industrial Average futures fell by more than 400 points, but both the S & P 500 and Nasdaq 100 futures were in the negative territory.
The decline in futures occurred on Thursday after WHO authorities warned of a new Covid-19 variant detected in South Africa. The UK has temporarily suspended flights from six African countries due to variants.
Shares rose slightly on Wednesday as the market closed due to Thanksgiving on Thursday, halting this week’s losses on the S & P 500 and the Nasdaq Composite.
Treasury yields are rising this week, putting pressure on high-growth stocks. The Nasdaq fell 1.3% in a week, while the S & P 500 rose less than 0.1% and the Dow rose about 0.6%.
The last week of the year is usually a strong time for the market, and so-called Santa Claus rallies usually create a happy holiday on Wall Street. The S & P 500 has risen 25% so far.
“We’re probably in the market in that lane for the next few weeks until we reach the next week. [Fed’s Federal Open Market Committee] Yung-Yu Ma, chief investment strategist at BMO Wealth Management, said, “I think the conference will see stronger consumer spending. Seeing the November employment report coming out in mid-December, that’s it. I think it’s a good thing. “
“I think the possibility of readjustment, re-examination, or market revaluation is most likely to come when the FOMC makes its next announcement. [Dec. 15].. Until then, we’ll have a lot more to know already, “Ma added.
Friday is also the unofficial start of the holiday shopping season, as investors are looking for insights from Black Friday to determine the mood of US consumers.
Retail stocks have seen dramatic movements in both directions during this earnings season. On Wednesday, Gap and Nordstrom’s share was put into the tank by more than 20%, but Coles surged more than 10% a week ago after reporting strong sales growth.
Retail executives talked about supply chain issues and how they manage inflation during the quarter. It’s also unclear whether discussions on supply chain issues could put consumers on early holiday shopping and squeeze fourth-quarter sales.
Sarah Henry, Portfolio Manager at Logan Capital Management, said: She added that her company was looking for a company with a long-term strategic advantage rather than trying to bet on the best holiday sale results.
On Wednesday, there were some strong economic reports, including October’s higher-than-expected personal income and consumption, and the lowest unemployed bills since 1969.
There are no major economic releases scheduled for Friday. The stock market closes at 1:00 pm EST on Friday due to a holiday weekend.
— CNBC’s Estance Huang contributed to this report.
Equity futures fall amid concerns over new Covid variants found in South Africa
Source link Equity futures fall amid concerns over new Covid variants found in South Africa