Stock futures held steady on Monday after the S&P 500 had its first drop, starting a year since 2016.
Futures on the Dow Jones Industrial Average fell 10 points. S&P 500 futures were level and Nasdaq 100 futures were down less than 0.1%.
The futures contracts came after a sharp sell-off on Wall Street began in 2021. The S&P 500 fell 1.5% to its worst daily performance since October 27. Ten of the 11 S&P 500 sectors suffered losses, led by real estate.
The blue-chip Dow shook off 382 points after tumbling to 700 points at its low of the day. The Nasdaq composite declined 1.4% as the FAANG block all fell to start the new year.
The broad sale of the market took place ahead of Tuesday’s by-elections in Georgia, which will determine whether Republicans can retain control in the Senate. Meanwhile, the growing cases of Covid-19 worldwide and new closure restrictions have kept investors on track.
“Investors are feeling angry this week,” Lindsey Bell, chief investment strategist at Ally Invest, said in an email. ‘COVID cases are on the rise, with a new variant of the virus spreading around the world. “Tomorrow’s run-off races in Georgia could determine the composition of the Senate, and the market has generally fared better in a split Congress. ‘
Many fear that increased tax rates and more progressive policies could become a reality if Democrats gain control of the Senate. However, such an outcome could create an opportunity for a larger and faster spending package, which will help support the market.
“Even if the Democrats gain control, the margin will be remarkably thin and analysts are skeptical about whether a significant shift in tax or regulatory policy is possible,” said Mark Hackett, head of investment research at Nationwide, in a note. . “Democratic control, however, could trigger a new round of coronavirus stimulation and possibly an infrastructure package.”
England on Monday imposed a third closure of the coronavirus as the region struggles with a more transmissible variant of Covid-19. The state of New York has confirmed its first case of the new tribe, government Andrew Cuomo said Monday.
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