(Reuters) – The S&P 500 and Dow indexes were set to open lower on Monday as concerns about a jump in COVID-19 cases curbed risk appetite, with investors also hoping for more stimulus to shore up a battered global economy.
FILE PHOTO: Traders wearing masks work, on the first day of in-person trading since the closure during the outbreak of the coronavirus disease (COVID-19) on the floor at the New York Stock Exchange (NYSE) in New York, U.S., May 26, 2020. REUTERS/Brendan McDermid
After the U.S. government’s $3 trillion commitment to the crisis 12 weeks ago, record levels of new infections have forced many states to backpedal their reopening plans just as those support programs are due to expire.
At least 14 states have reported record hospitalizations so far in July and Florida saw 12,000 new cases on Sunday. Furthermore, the U.S. Centers for Disease Control and Prevention has warned that cases and deaths could rise this autumn and winter.
Congress is set to debate a new aid package this week.
Positive news related to vaccine development, stimulus talks in the United States and Europe could be the three catalysts that help the S&P 500 potentially break through its year-to-date break even level this week, said Thomas Hayes, managing member at Great Hill Capital LLC in New York.
Later in the day, all eyes will be on early-stage human trial data on a vaccine being developed by AstraZeneca Plc (AZN.L) and Oxford University.
Signs of progress on a potential coronavirus vaccine, improving economic data and a relatively upbeat start to the second-quarter earnings season helped the S&P 500 and the Dow rise for three consecutive weeks.
The benchmark S&P 500 is now less than 5% down from its Feb. 19 record close.
Oilfield services giant Halliburton Co (HAL.N) rose 5.2% premarket as it posted a surprise adjusted profit benefiting from aggressive cost cuts.
At 8:20 a.m. ET, Dow e-minis 1YMcv1 were down 45 points, or 0.17%. S&P 500 e-minis EScv1 were down 4.75 points, or 0.15% and Nasdaq 100 e-minis NQcv1 were up 26.5 points, or 0.25%.
Pfizer Inc (PFE.N) rose 3.3%, after Britain signed deals to secure 90 million doses of two possible COVID-19 vaccines from an alliance of the U.S. drugmaker, Germany-based BioNTech (22UAy.F) and French group Valneva (VLS.PA).
Valneva is also in talks with the European Union for a vaccine supply deal.
(This story corrects paragraph 10 to remove reference to Amazon.com reporting quarterly results this week)
Reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Shounak Dasgupta