Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

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.'

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.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

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.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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…

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 spread betting and CFDs.

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