U.S. Stocks Likely To Come Under Pressure In Early Trading

Stocks are likely to come under pressure in early trading on Monday, adding to the steep losses posted last week. The major index futures are currently pointing to a sharply lower open for the markets, with the Dow futures down by 428 points.

Concerns about the rapid spread of the Omicron variant of the coronavirus are likely to contribute to continued weakness on Wall Street.

With the World Health Organization saying the number of cases is doubling in 1.5 to 3 days in areas with community transmission, traders seem worried the new strain could derail the global economic recovery.

The spread of the Omicron variant could also lead to further global supply chain issues, which have contributed to elevated inflation.

Shortly after the start of trading, the Conference Board is scheduled to release its report on leading economic indicators in the month of November. The leading economic index is expected to increase by 0.8 percent.

Following the pullback seen on Thursday, stocks fluctuated over the course of the trading day on Friday but largely maintained a negative bias. The-tech heavy Nasdaq saw particular volatility following the steep drop seen on Thursday.

The Dow and the S&P 500 closed firmly in the red, while the Nasdaq posted a much more modest loss. While the Nasdaq edged down 10.75 points or 0.1 percent to 15,169.68, the Dow tumbled 532.20 points or 1.5 percent to 35,365.44 and the S&P 500 slumped 48.03 points or 1 percent to 4,620.64.

The major averages all showed notable moves to the downside for the week. The Nasdaq plunged by 2.9 percent, while the Dow and the S&P 500 dove by 1.7 percent and 1.9 percent, respectively.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Monday. Japan’s Nikkei 225 Index tumbled by 2.1 percent, while China’s Shanghai Composite Index slumped by 1.1 percent.

The major European markets have also shown notable moves to the downside on the day. While the German DAX Index has plummeted by 1.9 percent, the U.K.’s FTSE 100 Index is down by 1.2 percent and the French CAC 40 Index is down by 1 percent.

In commodities trading, crude oil futures are plunging $3.07 to $67.79 a barrel after tumbling $1.52 to $70.86 a barrel last Friday. Meanwhile, after climbing $6.70 to $1,804.90 an ounce in the previous session, gold futures are falling $6.90 to $1,798 an ounce.

On the currency front, the U.S. dollar is trading at 113.58 yen versus the 113.63 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.1283 compared to last Friday’s $1.1240.

Source: Read Full Article