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On July 8, 2021, in New York City, people walk down Wall Street in the rain. On increased fears of a global Covid revival, the Dow Jones Industrial Average fell over 200 points after initially dropping over 500 points.
courtesy of Getty Images
On Friday, a pause in the stock selloff appeared to be in the works, with U.S. stock futures and European equities both rising, a day after economic concerns over a resurgence of Covid-19 infections caused severe losses in those markets. The Dow Jones Industrial Average futures were up more than 150 points, while the S&P 500 and Nasdaq-100 futures were up 0.3 percent and down 0.1 percent, respectively. The session on Thursday saw the
Dow Jones Industrials, Inc.
S&P 500,
and
The Nasdaq Composite Index
Investors are worried that increasing Covid-19 instances in some nations could hinder the global economy’s recovery.
The European Union (EU)
The Stoxx 600 index is a measure of how well a company
Pharmaceutical companies and luxury goods makers led the gains, with the market up 1% after suffering its largest loss since May 11. Following U.S. selling, Asian shares experienced a mixed session, with some losses.
The Nikkei 225 index is a Japanese stock market index.
decreased by 0.6 percent and
The CSI 300 in China
—though Hong Kong’s index fell 0.4 percent.
The Hang Seng Index (HSI) is a stock market index
The stock price increased by 0.7 percent. The People’s Bank of China announced on Friday that it was lowering reserve requirements for its banks by half a percentage point to boost the world’s second-largest economy.
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While stocks were expected to rise, the bond market appeared to be cooling. The 10-year Treasury yield was hovering at 1.33 percent on Friday, after falling below 1.29 percent on Thursday. In late March, the yield was nearly 1.75 percent. Falling yields reflect a growing belief that the Federal Reserve will be less tolerant of high inflation than previously assumed. Investors have become increasingly concerned about the Delta variation of the coronavirus, which is rapidly becoming the most prevalent type of the virus due to low vaccination rates in several parts of the world, particularly several Asian countries and developing countries. Thursday evening,
Pfizer
and a Covid-19 vaccine collaborator
BioNTech
said in a statement that they are working on a booster shot to target the delta version and will petition authorities to permit distribution of the booster shot in the coming weeks. Apart from wholesale inventories, there is no data on the agenda for Friday. Manufacturing and service sector growth has slowed in recent months, according to current economic data.
The banking sector will provide an update to investors next week when the largest banks announce their second-quarter results. Along with examining the results, Wall Street will pay special attention to the economic forecasts given by bank executives. On Thursday, banking stocks fell as a result of economic concerns. Overseas, data revealed that the United Kingdom’s GDP slowed in May after a significant increase in April as coronavirus restrictions were relaxed and the economy was boosted. On Friday and Saturday, G-20 finance ministers and central bank governors will gather in Venice, Italy, to debate tax reform and recovery progress in the wake of the epidemic. Denim maker’s stock is currently trading at a discount.
Levi Strauss & Co. is a fashion house founded by Levi Strauss.
After delivering a beat-and-raise fiscal second quarter late Thursday, the denim producer could be in the spotlight. Stocks of
Vectura Group is a company that specializes in the creation of
In London, shares of the cigarette giant increased by 13%.
Morris, Philip
International announced on Friday that its subsidiary PMI Global Services has agreed to bid for the U.K. developer of inhaled treatments for the treatment of respiratory disorders in a cash deal for £1.45 billion. According to Philip Morris, the acquisition is part of the company’s development into products other than tobacco and nicotine. To contact the editors at Barron’s, send an email to editors@barrons.com./n
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