US stocks set to drop amid concerns over rising Covid cases

The Dow Jones will open 74 points down at 14,127, the S&P 500 is set for a 9 point decline to 4,176, while the Nasdaq 100 is seen tumbling 38 points to 14,004

US stocks are set to lose ground today as concerns over rising number of global COVID cases dampen sentiment.

Spread betting quotes indicate the Dow Jones will open 74 points down at 14,127 while the broader-based S&P 500 is set for a 9 point decline to 4,176.

The tech-heavy Nasdaq 100 is seen tumbling 38 points to 14,004.

On the COVID-19 front, things are not looking too bad for the US, with some reports indicating the more than half the adult population has had at least one jab.

After rising at a modest pace for a couple weeks, the past four straight days have seen new U.S. Covid cases falling on a week-to-week basis. Sunday's 40K cases, according to the New York Times database, were down 16% compared to Sunday last week, following a 19% drop on Saturday. That's the best two-day performance since late February, reported Pantheon Macroeconomics.

It's not clear why cases have started to fall again—and it's too soon to be sure that the emerging down trend will continue—but the fading of Easter effects, the gradual increase in average temperatures, and the accelerating vaccine rollout likely are all playing a part. Changing behaviour in response to soaring cases probably has made a difference too, especially in Michigan and Minnesota, where restaurant diner numbers have plummeted over the past week. Cases in both states now appear to have peaked, Pantheon noted.

If the pandemic was the major stock market theme of last year, the GameStop saga has been one of the big themes of this year and today it was reported that the computer gaming retailer’s chief executive, George Sherman, will quit before the end of July.

The shares rose nearly 10% in pre-market trading.