US stocks are in their worst week in two months
US stock futures went down on May 14. Traders are anxious about possible prolonged impact of the pandemic on the economy.
Following a brief pause after April’s rally, stocks went up again, riding on the hopes of the coming reopenings and easing of the containment measures. However, leading health experts warned that a rushed reopening will lead to new outbreaks and make the country vulnerable to the second wave of the virus. The Chairman of the Federal Reserve Jerome Powell warned that the United States might be headed for its worst recession in post-war history.
The three major indexes are now about to show their worst weekly performance since the record lows of March. The investors are also waiting for the new initial jobless claims data. It is expected, that it will show 2.5 million new claims. Last week’s report showed 3.17 million new claims. To sum up, it means that more than 35 millions turned to welfare after the beginning of the pandemic.
In corporate news, Cisco shares gained 2.5% in premarket. The company’s earnings report surpassed the forecasts. The lockdowns around the world predictably enhanced the demand for the remote-work services.
448 companies included in S&P index have already published their quarterly reports, the rest are expected to do so soon. Refinitiv claims, that average earnings have dropped 12.2%.