U.S. Stock Market Set To Open Sharply Lower

Sizable Losses Are Expected At The Opening

Yesterday, the market’s attempt to rebound was successful, and S&P 500 closed with a 6% gain. However, the ongoing problems on the coronavirus front have once again put pressure on the stock market.

S&P 500 futures have quickly reached their loss limit in pre-market trade so their trading was halted. Trading of the S&P 500 ETF (SPY) was not halted, so investors and traders can quickly check where the market is set to open. At this time, SPY is losing more than 6%.

Thus, the stock market is set to open close to lows near the 2360 level on the S&P 500. This opening will come as a major test for the market’s near-term ability to hold at current levels.

President Trump Will Discuss Important News From FDA In A Press Conference Today

U.S. President Donald Trump has published a tweet in which he stated that he will have a press conference today and share some very important news from FDA concerning the coronavirus. This press conference adds another layer of uncertainty since it is possible that new virus containment measures will be announced.

Meanwhile, the updates on coronavirus are alarming. Australian Prime Minister Scott Morrison has warned that the current situation can last six months or even more. Israel’s coronavirus cases have increased by 40% in the past twenty four hours. Other countries are also reporting increases in coronavirus cases.

Currently, it looks like the continued upside in coronavirus cases around the world will persist, especially as many countries are starting to implement mass virus tests for their citizens. In this light, the market players expect that further containment measures will be implemented, hurting the economy.

Oil Stocks In Focus As Oil Reaches Lows Not Seen From 2003

Oil prices continue to fall as projections for the decline in oil demand get worse day by day. The collapse of the OPEC deal does not help either. As a result of these two blows, oil prices have fallen to levels last seen 17 years ago.

The first hours of trading are set to be difficult for all oil-related stocks. While major oil companies may start to get more support from investors due to their diversified nature, shale companies and oil services companies like Schlumberger or Baker Hughes are almost guaranteed to have a tough day.