S&P 500 futures were trading nearly 40 points higher this morning, and the DowJones Industrial Average rose more than 380 points. It looks like the start of a bullish week. However, Coronavirus infections in the US hit a new all-time high last week, dwarfing the 57,000 mark as the number of states exceeding the 5% threshold for positive tests continued to rise. There is no current vaccine candidate that would prove safe and effective in a clinical trial against the virus in humans, but there are some indications that it should happen soon.
Hospitals in the southern and western US are at full capacity due to a coronavirus outbreak. The US Centers for Disease Control and Prevention (CDC) and the US Department of Health and Human Services (HHS) are sounding the alarm over an increasing number of cases of a new outbreak of the deadly virus, saying hospitals are reaching capacity and that strict social and economic enforcement is needed to contain the growing outbreak, Reuters reports.
China is said to be on track to meet the purchasing targets for agricultural and manufacturing goods agreed in the first phase of the trade agreement. The US economic outlook for the second quarter of this year was stronger than expected, signaling that the global economy could recover faster than expected.
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Google, Amazon, and Facebook face proposed European rules aimed at curbing alleged anti-competitive behavior, forcing them to pay more tax and take more responsibility for illegal content. The tech giants have faced legal pressure from the EU over their role in the online advertising industry in recent months. Look for a possible tech sell off.
Bottomline – Markets Bullish
The stock markets are generally BULLISH because of the Federal Reserve pumping in money and buying assets. This has helped the market recover from the COVID-19 drop in March. However, there are indicators that show decreased earnings and bankruptcies could cause a another downturn. The BEAR driver continues to be the coronavirus. However, the Federal Government and state governments are unlikely to “shut down” the country as again, but may close some areas regionally.