U.S. Stocks May Give Back Ground In Early Trading

Following the rally seen last week, stocks may give back some ground in early trading on Monday. The major index futures are currently pointing to a sharply lower open for the markets, with the Dow futures down by 252 points.

Concerns about a second wave of coronavirus infections may inspire traders to cash in on recent strength in the markets, which partly reflected optimism about efforts to remove restrictions intended to contain the outbreak.

Reports of new clusters of coronavirus cases in South Korea and China are likely to raise worries about the potential threats of reopening the economy too quickly.

Data from Germany’s public health agency also indicated coronavirus cases in the country are once again on the rise following recent steps to ease lockdown measures.

Traders have recently expressed optimism about a quick economic recovery as some states around the U.S. have already begun to reopen.

The optimism inspired traders to shrug off last Friday’s Labor Department report showing a record drop in employment in the month of April.

After moving significantly higher early in the session, stocks saw some further upside over the course of the trading day on Friday. The major averages added to the gains posted in the previous session, with the tech-heavy Nasdaq reaching its best closing level in well over two months.

The major averages ended the session just off their best levels of the day. The Dow jumped 455.43 points or 1.9 percent to 24,331.32, the Nasdaq surged up by 141.66 points or 1.6 percent to 9,121.32 and the S&P 500 shot up by 48.61 points or 1.7 percent to 2,929.80.

For the week, the Nasdaq skyrocketed by 6 percent, the S&P 500 spiked by 3.5 percent and the Dow soared by 2.6 percent.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index jumped by 1.1 percent, while Hong Kong’s Hang Seng Index surged up by 1.5 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the U.K.’s FTSE 100 Index has dipped by 0.5 percent, the German DAX Index is down by 1.3 percent and the French CAC 40 Index is down by 1.8 percent.

In commodities trading, crude oil futures are rising $0.25 to $24.99 a barrel after jumping $1.19 to $24.74 a barrel last Friday. Meanwhile, after slumping $11.90 to $1,713.90 an ounce in the previous session, gold futures are sliding $5.50 to $1,708.40 an ounce.

On the currency front, the U.S. dollar is trading at 107.41 yen versus the 106.65 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is valued at $1.0816 compared to Friday’s $1.0839.

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