Treasury Secretary Steven Mnuchin said the U.S. shouldn’t shut down the economy again even if there is another surge.
Bloomberg: U.S. stock-index futures surged along with European shares on Friday, indicating a rebound for equities following Wall Street’s worst sell-off in 12 weeks.
Contracts on the S&P 500 Index rose 1.7% as of 10:02 a.m. in London, after the underlying index on Thursday fell the most since March 16 on signs of market overheating and worries about a second wave of coronavirus infections. Futures on the Dow Jones Industrial Average jumped 2.1% and those on the Nasdaq 100 Index added 1.4%.
“Major indexes like the DAX or S&P 500 have already reached our year-end predictions,” DWS Chief Investment Officer Stefan Kreuzkamp said. “For the second half of the year, investors should expect more volatility and temporary setbacks. However, these dips should be seen as buying opportunities.”
The U.S. benchmark stock index is still 34% above its March low, and the Nasdaq Composite is now up 5.8% for the year. Meanwhile, virus cases have begun to spike again in states including Texas, California and Florida. Treasury Secretary Steven Mnuchin said the U.S. shouldn’t shut down the economy again even if there is another surge.
Carnival Corp. climbed 12% in premarket trading, while United Airlines Holdings Inc. and American Airlines Group Inc. added 9% or more. Shares of airlines, cruise and travel operators that soared in recent weeks bore the brunt of the selling on Thursday.
Also a notable pre-market mover, Lululemon Inc. fell 7.1% after reporting worse-than-expected sales.
U.S. futures are rebounding “on expectation that the latest acceleration in new Covid-19 cases in the U.S. may not necessarily mean that the second wave is knocking on the door,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “Hence, we could see some dip-buying in the S&P 500 near the 3,000 level.”