US stocks will be in focus today, after the markets finished the week with strong losses.
Context: US stocks recovered slightly on Friday after recording massive losses in the previous trading session. Indices trading remained under pressure and closed the week lower, recording their biggest weekly decline since March 20.
Details: Fears of a resurgence of new coronavirus cases hurt market sentiment, with various US states, including Texas and Arizona, recording an increase in infections.
The IMF’s chief economist also warned of a slower growth in more economies than was earlier expected. Gita Gopinath said that the pandemic had inflicted “significant scarring” on the global economy and warned that the chances of recovery remained highly uncertain.
The Dow Jones index was highly volatile on Friday, touching a high of 25,965.55 and a low of 25,183 during the session. The index closed higher by 477.37 points at 25,605.54 on Friday, but posted a weekly loss of 5.5%.
The Nasdaq 100 gained 1% to close at 9,588.81 in the previous session, while the S&P 500 index rose 1.3% to 3.041.31. For the week, the tech-laden index lost 2.33% and the S&P 500 shed 4.8%.
Economic data gave some hope to investors on Friday, with the University of Michigan’s consumer sentiment index climbing to 78.9 in June, from a reading of 72.3 in May. Import prices increased 1% for May, their biggest rise since February 2019.
Airline stocks spiked on Friday, with shares of United Airlines Holdings climbing 19% and American Airlines Group jumping 16%.
What to watch: Traders await the New York Empire State manufacturing index, which increased to -48.5 in May and is expected to rise to a reading of -27.5 in June.
Investors will also assess the daily covid-19 numbers, with the total global infections exceeding 7,914,860 with 433,470 deaths. The US has so far reported around 2,094,060 coronavirus cases with 115,730 fatalities.
Other Markets: European indices were trading lower at 8:30am GMT, with the FTSE 100, French 40 and Dax 30 index down by 2.2%, 2.7% and 2.6%, respectively.