After a strong sell-off on Wall Street, stock futures rose slightly in night trading on Monday.
The futures on the Dow Jones Industrial Average rose by around 100 points. The S&P 500 futures gained 0.4% and the Nasdaq 100 futures rose 0.5%.
The September sell-off intensified on Monday as the Dow Jones Industrial Average fell 500 points and suffered its worst day since September 8th. The S&P 500 lost 1.2% and posted its first four-day series of losses since February. The Nasdaq Composite fell just 0.1% after rallying late in the day.
Tesla shares fell nearly 6% in overnight trading after CEO Elon Musk said in a tweet that the electric car maker's "Battery Day" event would not reach "serious mass production" until 2022, disappointing investors and analysts.
Investors have been increasingly concerned about the pandemic as the UK is reportedly considering another national lockdown as new infections increase daily. Meanwhile, the prospect of further fiscal stimulus for the U.S. coronavirus deteriorated as lawmakers prepared for a Supreme Court affirmative battle as President Donald Trump rushed to nominate a successor to Judge Ruth Bader Ginsburg, who died on Friday.
"Coronavirus concerns have re-emerged and have investors worried that a reversal in reopening progress may be near," Lindsey Bell, chief investment strategist at Ally Invest, said in a note. "More and more uncertainty arises as we near the elections, but not the fiscal relief from Congress. But we are still optimistic that this decline will be bought sooner rather than later."
The key averages are on the way to heavy losses in September, a typical weak month for stocks. All three major averages had suffered losses for just three weeks in a row. The Dow and S&P 500 are down 4.5% and 6.3% respectively this month, while the Nasdaq is down 8.4% as investors dumped high-flying tech giants.
"Market volatility is returning after months of steady progress in risk-weighted assets, and we are seeing increased volatility ahead of the November US election," said Jean Boivin, head of the BlockRock Investment Institute, in a note. "In addition, negotiations on a new US fiscal package are dragging on, the pandemic is still spreading in many countries, and tensions in the US and China are high."
On Tuesday, investors will watch a hearing with US Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell before the House Financial Services Committee on pandemic responses.
In terms of earnings, Nike will release fiscal first quarter results after the bell on Tuesday.
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