The volatility and stock market have had an age-old relationship. Post a rally on Tuesday, the stock market futures point towards a steep fall in the initial hours of Wednesday. At 5 am, the DOW Jones futures pointed towards 500 points drop and the futures of Nasdaq and S&P 500 also showcased a possibility of substantial drop.
The futures are pointing towards a loss after the market had an excellent rally on Tuesday which helped the major indices to regain nearly 50% of their losses on Monday. The DOW gained as much as 1100 points while the S&P 500 witnessed its best single-day performance since 26the December. 2018.
Experts say that though the stocks performed well on Tuesday, a lot more gain is required to reflect the fact that the market is healing from within. The volatility in the market can only be side-lined when investors have strong evidence of the market performing well. Amidst all the unrest, investors keep a close tab on the various fiscal and market policies that are offered by the US government. Donald Trump offering a 0% payroll tax rate has had a positive influence on the market on Tuesday. Such relaxation from Trump will remain constant until the end of the year in hopes of holding the market up and strong.
The number of coronavirus cases globally has crossed 1,00,000 and still counting. In the US, around 1000 people are already infected with the deadly COVID-19. On Wednesday, there are no major monthly earning reports to be disclosed. This is good news because, with such reports, any negative trends might just add panic to the already dicey stock market scenario.
The relief rally witnessed yesterday has hasn’t been able to sustain itself and continue today. As per data, the number of jobs has reduced whereas the unemployment ratio has taken a major leap. Though the market may regain from the losses due to coronavirus, this is one aspect that needs to be taken care of or less the growth might well be stalled for the long run. The US officials state that the state of the US economy will improve substantially by the end of the year as numerous reforms and policies are already being taken up to put a pause on these issues.
Investors and traders alike on Wall Street are worried on how the day will end and whether the market will face any further major dips or not.