U.S. Stocks Set To Open Higher As Traders Buy Stocks After The Recent PullbackS&P 500 futures are gaining ground in the premarket trading session as investors bet on economic recovery.
Coronavirus Continues To Spread Actively Across The World
According to data from Johns Hopkins University, more than 10 million coronavirus cases have been registered in the world since the beginning of the pandemic. The U.S. is at the top of the list with more than 2.5 million cases.
Lately, the increase in the number of new cases has pushed Texas, Florida and California to close bars which are believed to play a big role in the spread of the virus. As reopenings lead to the increase in the number of new cases in some parts of the world, the pace of additional reopenings is unclear.
Nevertheless, S&P 500 futures were able to shrug off virus worries during the premarket trading session and are pointing to a higher open as traders rush to buy stocks after the recent pullback.
Facebook In Spotlight As More Advertisers Join The Boycott Campaign
Shares of Facebook have suffered an 8% loss on Friday as the company found itself under pressure due to a boycott campaign aimed at improving the moderation process and removing hate speech from the platform.
Many companies have already joined this campaign and refused to buy ads from Facebook, and new names are added every day. According to a FOX Business Network report, Pepsi has joined the campaign over the weekend.
Facebook shares have already fully recovered from the losses they incurred during the acute phase of the coronavirus crisis and are up 5% year-to-date even after the recent sell-off.
However, the stock looks set to continue the current downside move as it is already losing ground in the premarket trading session.
Traders Await Key Employment Reports
On Wednesday, the U.S. will provide ADP Employment Change report for June. On Thursday, the market will have to digest new data on Initial Jobless Claims, Continuing Jobless Claims and Non Farm Payrolls.
These reports will likely have a major impact on market sentiment. At this point, the market is worried about the spread of coronavirus but these worries are offset by optimism about the economic recovery.
Currently, global markets are undecided about future direction. The U.S. dollar, which serves as the safe haven asset of last resort, is losing ground, while the other safe haven asset, gold, continues its upside move.
The release of the employment reports should provide traders with more data on the health of the economy and set the trend for the next few weeks.
For a look at all of today’s economic events, check out our economic calendar.