U.S. stock futures edged lower Thursday as new restrictions imposed to curb rising coronavirus infection levels weighed on the economic outlook.
Futures tied to the S&P 500 ticked down 0.4%, suggesting that the broad market gauge may drop for a third consecutive day after the New York opening bell. Contracts linked to the Dow Jones Industrial Average also slid, while Nasdaq-100 futures dropped 0.6%.
Stocks have been choppy this week as investors weigh optimism about Covid-19 vaccines paving the way for a sharper economic rebound against more immediate concerns. Rising coronavirus cases, fresh lockdown measures and questions about how quickly the vaccine can be made widely available have damped the mood for many people.
“Markets are grappling to price in two very different pieces of news across two very different time frames,” said Hugh Gimber, global market strategist at J.P. Morgan Asset Management. “The vaccine news is categorically positive, but it will play out over several months and several quarters. Investors are trying to balance that against the short-term news of rising cases and a deteriorating economic outlook.”
My take: It feels like whole market went to hell Wednesday afternoon when New York City closed its school. That hit Wall Street where its kids live.