Stock futures cling to hopes of recovery as virus cases rise

Published 22/06/2020 in Business News, Economy & Finance

Stock futures cling to hopes of recovery as virus cases rise

(Reuters) – U.S. stock index futures rose on Monday on hopes of stimulus-fueled economic recovery even though sentiment remained fragile amid growing evidence of a surge in the coronavirus infections.

Trillions of dollars in monetary and fiscal support, the reopening of businesses and improving economic data have helped the S&P 500 .SPX climb about 41% from its March lows, leaving it only about 9% of its Feb. 19 record high.

Rising virus infection rates, however, remained an overhang on the markets, especially after the World Health Organization reported a record rise in global coronavirus cases on Sunday.

On Friday, both the S&P 500 .SPX and the Dow .DJI ended a choppy session in the red after Apple Inc’s (AAPL.O) move to temporarily shut some U.S. stores brought back concerns of a delay in recovery of business activity.

At 6:18 a.m. ET, Dow e-minis 1YMcv1 were up 194 points, or 0.76%. S&P 500 e-minis EScv1 were up 26 points, or 0.85% and Nasdaq 100 e-minis NQcv1 were up 86.5 points, or 0.87%.

American Airlines Group Inc (AAL.O) slipped 5.8% in premarket trading as it planned to secure $3.5 billion in new financing, to improve the airline’s liquidity as it grapples with travel restrictions caused by the coronavirus.

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