Coronavirus cases surge in the US, US stocks future slips

The United States has seen the highest ever number of new COVID-19 cases in the past two days. The death due to the virus is also higher than the previous week. On another side, the US government is still silent regarding the stimulus package. As there is no reliable news regarding the stimulus package, the market has lost hope of the stimulus package.

The combination of all these affects the US stocks future highly. According to most of the market analysts and investment strategists, the market mood is stimulus-dependent for the last several weeks. They also predicted that, if the stimulus package does not come, the market will react violently. US stock future has made that prediction accurate.

Almost all the US stocks future is showing a sharp fall. US 30, US Tech 100 and US 500 stocks futures are showing red in the chart. It is a warning sign for the investors. The stocks of the leading companies of the US will be low next week. Especially the tech company stocks might face a fall severely this week if the stimulus package did not come before Presidential election 2020.

There is some good news regarding Wall Street. US economic output has renounced by 31.9% in the third quarter of FY21.

According to the analysts of Westpac, this bounce has happened due to increased consumer spreading. This is a good sign of the US economy. But sill the GDP will be lowered by 4% than the end of the previous year. They also have added that the fiscal stimulus is a must to recover the economic wounds.

This falling of market and uncertainty regarding fiscal stimulus is increasing the chances of winning the Democratic candidates in the presidential election. According to the analysts of NatWest Markets, the probability of a Democratic sweep has increased 65-70% after the last debate between President Trump and Joe Biden.