Dow Jones on Knife Edge Because New York is a Coronavirus Timebomb

  • Dow Jones Industrial Average (DJIA) futures turned negative on Wednesday after historic rally.
  • New York is emerging as the new global hotspot for coronavirus
  • The United States is on track to surpass Italy and even China in number of Covid-19 infections.

The stock market’s roaring comeback is over. After an historic 11% surge yesterday, the Dow Jones looks set to open lower on Wednesday.

The news comes as New York emerges as a terrifying global hotspot for the coronavirus. Despite Trump’s hopes to return to normal by Easter, New York governor Andrew Cuomo sent a warning to the nation:

We are your future. Where we are today, you will be in three weeks, four weeks, five weeks, six weeks.

The United States now has 55,225 confirmed cases of Covid-19, second only to Italy and China. Source: John Hopkins University

Cases in the New York area now stand at 25,000 and the rate is doubling every three days. The United States is poised to overtake Italy in terms of confirmed cases. The country may even surpass China within the next week if containment measures don’t work.

Dow futures fade after stimulus hopes

Dow Jones Industrial Average (DJIA) futures made a strong attempt to keep yesterday’s 11% rally going. But after pushing higher on news of the $2 trillion agreement, the market quickly faded .

S&P 500 futures and Nasdaq Composite futures also fell negative, down 0.37% and 0.2% respectively.

Dow Jones Industrial Average (DJIA) futures rallied after Congress’ $2 trillion stimulus deal was agreed, but faded shortly after. Source: Yahoo Finance

Congress delivers a $2 trillion rescue package

After days of political infighting, the White House and Congress will finally deliver a $2 trillion fiscal stimulus package. Senator Mitch McConnell emerged at 2 am ET Wednesday to announce the news:

At last, we have a deal. In effect, this is a wartime level of investment into our nation.

In the face of widespread economic panic and potentially millions newly unemployed,…

Source Link