US Stock Market Futures: Dow, S&P 500, Nasdaq Slide; Point To Tuesday Opening Drop

KEY POINTS

Wall Street will plunge into the red Tuesday
Investors are still plagued with doubt about the wisdom of practically all states reopening for business in the midst of the COVID-19 pandemic
A jump in coronavirus cases and deaths will drop the market

Stocks closed mixed Monday, reflecting the conflicting emotions of relief and fear among investors over decisions, however wise, by 48 states to reopen their economies. This angst seems to be carrying over into Tuesday's trades with stocks futures diving overnight Monday.

Futures on the Dow Jones Industrial Average plunged 221 points, signifying a Tuesday opening drop of 229 points. Futures on the S&P 500 and NASDAQ Composite also pointed to Tuesday opening losses for both major indices.

Monday was a different story for both the Dow and the S&P 500, but a familiar one for the NASDAQ. The Dow gave up 109.33 points, or 0.5%, to end at 24,221.99. The S&P 500 inched forward by less than a point to close at 2,930.19. On the other hand, the NASDAQ gained 71.02 points, or 0.8%, to finish at 9,192.34.

Last week, stocks posted back-to-back gains Thursday and Friday. As a consequence, the Dow was up 2.6% for the week at 24,331.32 while the S&P 500 saw a weekly rise of 3.5% to 2,929.80.

For this week, however, the broader picture for the Dow is much grimmer, with the index falling 100 points to start the week. The S&P 500 was little changed Monday. The NASDAQ soared 6% last week to 9,121.32.

Tuesday will be the second straight day in red for the Dow while the S&P 500 will re-enter this familiar territory. On the other hand, the tech-heavy NASDAQ will see its six-day winning streak snapped with the allure of tech stocks seeming to fade for now.

The NASDAQ rose for a sixth day Monday, registering its longest winning streak this downbeat year. With Monday’s gain, the NASDAQ is firmly in the green. It's up 2.4% and is a scant 6.5% from its record high reached on February 19.

Investors continue to swamp tech firms, which are proving to be the most resilient in the new normal era of COVID-19. Shares of Amazon and Netflix have both soared by more than 30% this year, while Microsoft gained 18%. The Dow and S&P 500 could use more of this enthusiasm.

“Markets have been torn between optimism on the tentative re-opening of some economies and caution on the still grim economic data,” said Mike Pyle, global chief investment strategist at BlackRock Investment Institute, in a note to investors. “Markets will watch out for any cracks in the financial system and elsewhere in the economy as virus infections climb.”