US Indices Stumble near 1-Month High on Virus Concerns

US Indices Stumble near 1-Month High on Virus Concerns


Major US stock index futures fell from almost a 1-month high as coronavirus recovery hopes lessened. Stock benchmarks surrendered gains earned earlier on Tuesday as the situation worsened in the United States. New York, the epicenter of the United States outbreak, reported its largest single-day death count. Market participants are looking for fresh developments to decide on their trading side. The Dow Jones Industrial Average futures dropped to 22246, the S&P500 futures declined to 2620, and Nasdaq futures fell to 7952.


The dollar index, which measures the greenback against a basket of major currencies, recovered to 100.43, after having its sharpest drop in two weeks, as investors rushed to safety as virus fears returned. On the other hand, the buck did benefit from the failure of the Eurozone finance ministers of reaching a deal on coronavirus stimulus after 16 hours of talk. The EURUSD dropped to $1.0829, the GBPUSD tumbled to $1.2287, and the AUDUSD dipped to $0.6115. US treasury yields rebounded from the highs where the US 10-year yields fell to 0.693%, and the US 30-year yields declined to 1.284%. Market participants will continue to monitor any new developments and assess their implications on the economy.


Precious metal prices paused the recent rally awaiting fresh fundamental drivers. The price of a gold ounce hovered near $1650, the price of a silver ounce held steady near $15, and palladium futures inched higher to $2122.


Oil prices settled lower amid growing concerns over the OPEC+ meeting that is taking place tomorrow. Yet, investors aren't convinced that OPEC and its allies will agree on the needed cuts to stabilize the market. The lockdown weighed sharply on the demand levels, which could force oil producers to cut by at least 15 million barrels to make a difference, while reports are discussing a 10 million cut. On the other hand, the American Petroleum Institute reported a significant buildup in US crude oil stock for the second week. The institute stated that stockpiles were up by 11.938 million barrels. Market participants are looking forward to the official numbers to be published today by the US Energy Information Administration.

Major Economic Events

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