Home / Business / Stock futures remain unchanged as investors assess the reopening of the economy in the face of civil unrest

Stock futures remain unchanged as investors assess the reopening of the economy in the face of civil unrest

The New York Stock Exchange (NYSE) is located in the financial district of Lower Manhattan during the Coronavirus Disease (COVID-19) outbreak in New York City, the United States, on April 26, 2020.

Jeenah Moon | Reuters

Stock futures fell on Monday̵

7;s night trade as investors struggled with civil unrest across the country as states tried to reopen the coronavirus pandemic.

Futures on the Dow Jones Industrial Average were down 120 points. The S&P 500 futures and the Nasdaq 100 futures both fell about 0.3%.

In a last-minute speech from the White House on Monday evening, President Donald Trump said he would use the military if states and cities could not suppress the demonstrations. The future fell when Trump spoke.

“I am mobilizing all federal and local, civil and military resources to protect American rights,” said Trump. “If a city or state refuses to take the necessary measures to defend the lives and property of its residents, I will deploy the US military and quickly solve the problem for them.”

The stock market has largely ignored the unrest so far, but that could change if investors believe that the protests will continue until summer, which would disrupt state plans to reopen and compromise consumer confidence.

“Good news about vaccines helped stocks in May, but US-China relations and the June riots could be in the spotlight,” said Lori Calvasina, RBC’s chief strategist for US stocks, in a note. “The S & P 500 is still heavily dependent on the flow of messages.”

Andrew Cuomo, governor of New York, announced that New York will be under curfew from 11 p.m. on Monday evening. and lasts until 5 a.m. Tuesday to curb protests. Similar curfews have been introduced in cities across the country to break up mass gatherings.

The market rose slightly on June 1 after monthly gains followed one another. The Dow rose 90 points on Monday after rising 4.2% in May and rallying 11% in April. The S&P 500 rose about 0.3% after rising 4.5% in May and 12.6% the previous month.

Investors continued to focus on the progress of the economic reopening and offered stocks from airlines, retailers and cruise companies. However, many on Wall Street were concerned that the increasing risk of racial struggles and tensions between the United States and China could reverse the massive comeback of the market.

Tensions with China eased further as the country called on state companies to stop buying soybeans and pork from the United States, Reuters reported on Monday. The move came after Trump announced that it would take steps to revoke Hong Kong’s preferred trading status in response to a controversial new security law passed by the Chinese parliament.

“The separation between stocks and the economy has raised some concerns for some investors,” Jeff Buchbinder, equity strategist at LPL Financial, said in a note. “At the same time, the reopening of optimism and massive incentives overshadowed concerns about a second wave of COVID-19 infections and increasing US-China tensions.”

As of Monday, the S&P 500 recovered 39% from its March low, about 10% below its record high in February.

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