U.S. Stocks Set To Open Lower As Traders Focus On COVID-19

The Worsening Virus Situation In Some U.S. States And The Continued Problems In Latin America Put Pressure On Stocks

S&P 500 futures are pointing to a lower open as global markets turn their attention to the rising number of coronavirus cases in the world.

There is no specific catalyst for current weakness as the situation on the coronavirus front has been worrisome for quite some time.

According to data from Johns Hopkins University, more than 9.2 million coronavirus cases have been recorded in the world, with the U.S. at the top of the list with 2.35 million cases.

Recently, many U.S. states have recorded significant increases in the number of new cases while Latin America is struggling to contain the pandemic.

It remains to be seen whether the current minor sell-off will develop into something more serious since all previous sell-offs have been quickly bought by traders who believe that the unprecedented monetary stimulus from the world central banks will solve all problems.

Gold Shines Amid Virus Worries

Gold managed to settle above $1750 per ounce and continues its upside move as traders try to hedge against a potential market sell-off in case of a new round of lockdowns.

The rampant money-printing also helps gold which is viewed as the preferred way to store value.

Today, the worries about the virus seem to be real as the U.S. dollar is finally gaining ground against a broad basket of currencies, and the U.S. Dollar Index is trying to get closer to the 97 level.

A combination of virus worries and rising gold prices is bullish for gold stocks which have solid chances to return to highs seen in the middle of May.

Oil Slides Below The $40 Level

Yesterday, oil was trying to develop upside momentum above the psychologically important $40 level but the disappointing API Crude Oil Stock Change report put pressure on oil prices.

Today, the renewed virus worries add to the pressure, and oil-related stocks are positioned for a challenging opening of the trading session.

That said, a quick dip below a key level after a breakout is a normal event for a volatile commodity like oil so it maintains solid chances to continue the upside move.

For a look at all of today’s economic events, check out our economic calendar.