The Dow Jones futures were trading down on Monday, Oct. 26, which signals a fall in U.S. stock markets at the open. Globally, stock markets closed in the red amid rising COVID-19 infections in the developed world. While COVID-19 infections in the U.S. have been rising, the Democrats and Republicans still aren't on the same page regarding the next stimulus bill.
Stock market news today
One-third of the S&P 500 companies are reporting their earnings this week. Along with the earnings, stalled stimulus talks and the rising wave of COVID-19 infections in Europe and the U.S. have been driving the markets. The lockdowns, which crippled economic activity earlier this year, are back in some European cities. Countries are taking more drastic measures to prevent the spread of the coronavirus.
What are the U.S. stock market futures today?
The U.S. stock market futures point to an opening in the red. At 8:15 a.m. ET, the Dow Jones Industrial Average futures were down almost 1 percent, while the S&P 500 was down about 0.90 percent. The tech-heavy Nasdaq 100 Index, which has done well during the COVID-19 pandemic, was down about 1.2 percent. The so-called stay-at-home tech stocks could benefit from the lockdowns.
The Russell 2000 Index, which has mid-cap constituents, was down 1.2 percent. Small and medium companies have been impacted the most amid the COVID-19 pandemic. Usually, they don't have deep pockets like large companies.
Asian stock markets were in the red today
On Oct. 26, leading stock markets in Asia closed in the red. China’s Shanghai Composite Index was down 0.82 percent, while Hong Kong-listed shares closed in the green. South Korea’s Kospi Index was down 0.72 percent, while Japan’s Nikkei shed 0.09 percent of its value. With a fall of around 1.5 percent, Indian stock markets were the worst-performing Asian stock markets on Oct. 26.
Double-Dip recession in the making? German Ifo Business Climate drops to 92.7, slightly below expectations of 93. Current Assessment Component beats w/90.3 vs 89.9 expected BUT Expectations Component slumps to 95 vs 96.5 expected. pic.twitter.com/yzfHiph0y2— Holger Zschaepitz (@Schuldensuehner) October 26, 2020
European stocks fall, lockdowns are back
European stock markets were also trading with a negative bias in early trading on Oct. 26 amid rising COVID-19 infections and the resultant lockdowns. New coronavirus cases in France have hit record highs. Spain and Italy have announced lockdown measures to curb the spread of the coronavirus.
Germany’s DAX Index is the worst-performing market in Europe on Oct. 26. At 8:15 a.m. ET, the DAX was down 2.4 percent. A 20 percent fall in SAP stock has driven German stock markets lower. The country’s business climate index was also lower than expected. The U.K.’s FTSE 100 Index was down 0.43 percent, while France’s CAC 40 Index was down about 0.8 percent.
Rising coronavirus cases are hitting U.S. stock market futures today
Rising coronavirus cases in the U.S. seem to be taking a toll on U.S. stock market futures on Oct. 26. New COVID-19 infections in the U.S. surged to a record of 83,000 on Oct. 23 and 24, according to data from John Hopkins University. Previously, the Trump administration denied the possibility of another lockdown.
Despite soaring COVID-19 cases and the fall in corporate earnings, U.S. stock markets have soared to record highs this year. Many people see the divergence as a sign of a bubble building in U.S. stock markets.