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Breaking News: Dow Plunges 1861 Points Amid Surge of Coronavirus Infections

Posted by Fullerton Markets on June 12, 2020 at 4:33 PM


With the potential second virus wave and a lockdown, US stock futures could slide lower. Short SPX/USD?

  • With the potential second virus wave and a lockdown, US stock futures could slide lower. Short SPX/USD?
  • Dow fell 6.9%, or 1861 points last night – its worst day since 16 March.
  • On the other hand, the S&P 500 fell 5.59%, or 188 points. It is currently at the 3050-price level.
  • In addition, the CBOE Volatility Index VIX rose jumped by almost 50%, its highest level since 21st April. VIX is well known as Wall Street’s fear gauge.
  • The sudden and drastic fall in the US stock futures was due to mainly two reasons:

    1) Fed’s grim economic outlook from its meeting on Wednesday.
    2) Resurgence in coronavirus infections in half a dozen states in the US.

  • However, Trump administration pushed back the idea that it would allow the economy to shut down again even if coronavirus cases continue to rise. 
  • This would dampen the economy recovery in the longer term.
  • We believe that the S&P 500 still have further room to fall compared to the other 2 US stock futures. SPX/USD could slide lower towards 2930 to test the 61.8 Fibonacci retracement level.
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