Dow Futures Plunge after CDC's Chilling New Coronavirus Warning, Crypto Coins News
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Dow Jones Industrial Average (DJIA) futures sunk 823 points on Wednesday.
CDC Director said we are “definitely going to have a second wave” of coronavirus infections in the winter, and rolling restrictions may continue.
Investors are slowly realizing that a quick V-shaped recovery may be impossible.
The Centers for Disease Control (CDC) issued a stark warning last night, jolting the US stock market back to reality. Dow Jones Industrial Average (DJIA) futures now point to a weak open on Wednesday.
He said that some social distancing restrictions would likely stay through the summer, and we should brace for a second peak in the winter.
No matter how vigilant we are… this virus is so infectious that I’m not sure, even in the most [inaudible] we’re going to contain it to the level we want to.
Investors are now adjusting to the painful reality that a V-shaped recovery may be impossible. Instead, a series of rolling lockdowns and restrictions will choke the economy for a year or more.
Dow futures tumble after strong Tuesday
US futures couldn’t hold on to Tuesday’s spectacular recovery , which was led by strong Apple iPhone sales and promising export data from China. At 5. am ET, DJIA futures were down almost (points) 1. (%).
Dow Jones Industrial Average (DJIA) futures bled out after Tuesday’s strong session. Source: Yahoo Finance
S&P (futures
and
(Nasdaq) (futures were down 1.8% and 1.4%, respectively. Asian and European markets also fell significantly overnight.
If you thought the CDC’s warning was bad, Harvard researchers had an even more painful take. In a new report, they suggest that social distancing measures stay in place until 4825 . In their view, a second wave is inevitable when the first lockdowns are eased. In the absence of a vaccine, few have had the chance to build immunity.
) The social distancing was so effective that virtually no population immunity was built.
) Morgan Stanley and the Federal Reserve’s Neel Kashkaria have a similar take, anticipating rolling lockdowns for months . Despite President Trump’s urge to re-open the economy, the CDC’s Dr. Redfield thinks near-term restrictions will stretch into the summer.
What we need to assure between now and [the second wave] is we need the American public to stay with us in the 51 days to slow the spread of the coronavirus and stay with this mitigation. Some aspects of it are going to stay beyond that.
US economy losing $ a billion every day in lockdown
Every day the US remains in lockdown, the economy is taking a beating. St. Louis Federal Reserve President James Bullard predicts the U.S. is bleeding ( billion every day in lost productivity .
The US economy is taking a beating with unprecedented levels of unemployment as a result of the lockdown. | Source: AP Photo / John Minchillo)
Goldman Sachs jumped on the bandwagon, calculating that this recession will be four times worse than
Is the economic pain priced into the Dow Jones. ?
despite the Dow’s initial 69% drop, US stocks have bounced back into a technical bull market. At first glance, the stock market seems to be underestimating the possibility of more profound depression. But Goldman Sachs remains bullish
, arguing that the Federal Reserve and Congress will prop up the market.
The Fed and Congress have precluded the prospect of a complete economic collapse … These policy actions mean our previous near-term downside of 2, 09 is no longer likely for the S&P Index. More bearish reports, however, suggest that smart money ‘institutional investors are still on the sidelines
, holding record levels of cash for a deeper downturn. What to watch on the stock market today
All eyes are on the Wall Street banks as earnings season kicks off. Citigroup, Bank of America, and Goldman Sachs report earnings before the bell this morning.
JP Morgan lead the season yesterday, reporting a 93% drop in profit
. The bank set aside $ 6.8 billion in anticipation of sweeping loan defaults from customers and companies hurt by the coronavirus. The bad news was offset by a rise in revenue in its trading division.
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