Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Dow Jones poised to open lower as virus fears persist

'The market has again gotten caught up in the crossfire of increasing numbers of Covid-19 cases, trade protectionism and politics.'

DJIA Source: Bloomberg

Dow Jones futures in focus

Sharp volatility returned to equity markets on Wednesday – with all of the key US benchmarks finishing out the session lower. European markets also fell, with the €1.9 billion Wirecard scandal in particular drawing negative attention to the DAX.

On a more granular level, the Dow Jones Industrial Average ended the day down 2.72% or 710 points, to close at 25,445. No Dow constituent traded higher on Wednesday, though Walmart, Procter & Gamble and McDonald's saw their share prices fall the least. By comparison, Dow, Boeing and Exxon Mobil were the worst performing Dow stocks – down between 4.71% and 7.01%.

Looking at the other key US indices, the Nasdaq Composite finished the day down 222 points, just below the 10,000 point level; while the S&P 500 benchmark shed 2.59% or 80 points to close at 3,050 points.

At the time of writing Dow Jones Industrial Average futures were trading down 252 points or 0.99% – implying the key US benchmark would open lower on Thursday.

S&P 500 and Nasdaq futures were also lower.

Second wave fears persist

This bearish market activity comes after US Covid-19 cases continue to spike. Specifically, as reported by the Washington Post earlier this week, seven US states – including Arkansas, Arizona, California, North Carolina, South Carolina, Tennessee and Texas – reported the largest spike in Covid-related hospitalisations since the coronavirus pandemic began.

All up, the United States currently has 2.46 million total reported cases of Covid-19.

Looking at the coronavirus’ impact on equity markets, Chris Zaccarelli, the CIO of Independent Advisor Alliance, told CNBC:

'The market has been optimistic that the economy is re-opening and that life would get somewhat back to normal, but the virus may have other ideas.'

Mr Zaccarelli finished by noting:

'The market has again gotten caught up in the crossfire of increasing numbers of Covid-19 cases, trade protectionism and politics.'

Investors likely to watch jobs report

On Thursday, both continuing jobless claims data (for the week ending 13 June) and initial jobless claims report data (for the week ending 20 June), are set to be released.

Economists polled by Market Watch forecast that 1.38 million jobless claims will have been made for the week ending 20 June, representing a slight decline on a week-over-week basis.

Want to trade the US futures: long or short?

Create an IG trading account or log in to your existing account to get started now.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access
Learn more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.