Wall Street May Open On Negative Note

Lower U.S. index futures amid concerns over the possible impact of surging coronavirus variants on the global economy point to a weak start on Wall Street Monday morning.

Investors will be looking ahead to the earnings season, data on inflation, and the Federal Reserve Chair Jerome Powell’s testimony before Congress on Wednesday.

JP Morgan Chase, Goldman Sachs, and PepsiCo are scheduled to announce their quarterly earnings on Tuesday.

A few other top names, including Bank of America, Wells Fargo, Citigroup, Morgan Stanley, United Health and BlackRock will be reporting their quarterly earnings later in the week.

U.S. stocks ended sharply higher on Friday as traders continued to bet on optimism about strong economic recovery despite a surge in new variants of the coronavirus. With the upward move on the day, all three of the major averages ended the session at new record closing highs.

The Dow spiked 448.23 points or 1.3 percent to 34,870.16, the Nasdaq jumped 142.13 points or 1 percent to 14,701.92 and the S&P 500 surged up 48.73 points or 1.1 percent to 4,369.55.

Asian stocks ended mostly higher on Monday as Treasury yields stabilized after Friday’s jump and China’s central bank moved to boost liquidity, given concerns over slowing economic growth.

European stocks are exhibiting some weakness Monday afternoon, weighed down by comments from leaders of the G20 nations that Covid-19 variants could threaten the economic recovery from the pandemic.

Crude oil futures are down sharply, with West Texas Intermediate Crude futures for August declining by $0.88 or 1.16 percent at $73.68 a barrel.

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