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Stock Futures are Flat amid Renewed Concern about Recovery

U.S. stock futures were flat in overnight trading on Tuesday amid renewed investor concern about the global recovery from the coronavirus pandemic. Dow futures rose 10 points. S&P 500 futures gained 0.04% and Nasdaq 100 futures rose 0.15%. On Tuesday, stocks tied to an economic recovery led the losses amid rising new coronavirus cases in the U.S. and abroad.

Stock Futures are Flat amid Renewed Concern about Recovery

The Dow Jones Industrial Average lost more than 300 points, dragged down by a 3.4% drop in Caterpillar’s stock. The S&P 500 fell 0.76% with major losses from airlines and cruise lines. The Nasdaq Composite dropped 1.12% as Facebook, Apple and Tesla all closed lower. The small-cap benchmark Russell 2000 fell 3.58%, for its worst day since June.

Many regions of the world are seeing rising Covid-19 cases as highly contagious variants continue to spread, the World Health Organization said. Germany and France are extending or enforcing new lockdown measures. Concerns about the recovery come on the one-year anniversary of the market bottom. Stocks have rebounded from the market bottom with the S&P 500 rallying about 80% since the low one year ago, marking the best start to a new bull market on record.

On Wednesday, Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen will continue their testimony to the U.S. House Committee on Financial Services. In the first joint appearance Tuesday, the pair acknowledged the richly valued asset prices in the markets, but said that they are not concerned about financial stability.

Source: FXPro

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