US equity index futures tumble as rising coronavirus cases rekindle concerns over new restrictions and lockdowns, hitting global stocks.
Futures contracts on the S&P 500 Index drop 1.3%, pointing to a fourth straight daily decline for the gauge. Contracts on the Dow Jones Index and Nasdaq 100 trade 1.4% and 1% lower, respectively.
US Treasuries advanced across tenors, led by 30-year bonds, which saw their yield drop four basis points 1.41%
US deaths related to Covid-19 are nearing 200,000 and the nation’s new cases rose in line with a one-week average. At least one more cycle of the virus is expected in the fall and winter, the US’s former FDA Commissioner Scott Gottlieb said.
Federal Reserve chair Jerome Powell will testify before Congress from Tuesday to Thursday to discuss pandemic relief efforts. Investors are watching central bankers and policymakers to find clues over additional fiscal stimulus.
In Europe, the benchmark Stoxx 600 Index dropped 1.9% amid growing speculation that London might be heading for a second lockdown. UK chief medical officer Chris Whitty is set to warn on Monday that the UK is at a “critical point” and Germany’s health minister said the trend of cases in Europe is “worrying.”
