US stock futures fall as uncertainty around the economy persists
US stock futures dipped Sunday evening as the country heads into another week of uncertainty, with investors trying to understand the scale of the the economic crisis caused by coronavirus and wondering when the economy will be able to reopen successfully.
Dow futures dropped 346 points, or 1.5%. S&P 500 futures also fell 1.5%, and Nasdaq futures were down 1.3%.
Last week again brought painful economic data. More than 30 million Americans have now filed initial unemployment claims since the middle of March. Economists surveyed by Refinitiv expect the unemployment rate to have hit 16.1% last month, which would be its highest level since 1939.
The upcoming week is likely to provide greater clarity on the unemployment picture in the country, as the US government releases its latest jobs report on Friday.
Over the past week, many companies also warned investors of challenging times ahead as they reported earnings for the first three months of 2020. While many US companies only really began feeling the effects of coronavirus during the final month of the first quarter, the pandemic and the economic crisis resulting from it will weigh on companies throughout the June quarter, and likely beyond.
There are also questions about the likelihood of any large scale reopening of the economy anytime soon. While some states began lifting coronavirus lockdown restrictions in recent days, many business owners are nonetheless keeping their doors shut for now, and consumers may be wary, too.
