Jakarta, CNBC Indonesia – United States stock market, Wall Street, will be corrected deeply. Dow Jones futures fell more than 600 points on Monday, as fears of another lockdown driven by the spread of the coronavirus in Europe and the inability of Congress to approve more fiscal stimulus raised concerns about another blow to the domestic economy.
Airline, hotel and cruise ship stocks led the decline in pre-market trading, tracking their European counterparts as Britain signaled a possible second national shutdown.
Marriott International Inc, Hilton Worldwide Holdings Inc and Hyatt Hotels Corp fell between 2% and 4%, while casino operators Wynn Resorts Ltd, MGM Resorts International and Las Vegas Sands Corp fell between 3.6% and 6%.
Another round of business curbs would also threaten the broader economic recovery, analysts said, and could trigger a flight from equities. The first round of lockdowns in March saw the S&P 500 suffer its worst monthly decline since the global financial crisis.
The index has rebounded, thanks to historic global stimulus, but is on track to halt a five-month winning streak as investors dumped tech-heavyweights.
Companies including Apple Inc, Facebook Inc and Amazon.com Inc, which have dominated Wall Street’s rally since April, fell between 1.8% and 2.4% on initial deals.
Thomas Mantione, managing director at UBS Private Wealth Management in Stamford, Connecticut, said that the passing of US Chief Justice Ruth Bader Ginsburg also reduces the likelihood of another fiscal stimulus package to help lift the domestic economy from a deep recession.
“You have now incorporated another negotiating factor into the fiscal stimulus policy response, which makes it less likely to qualify before the November elections,” said Mantione.
Congress has for weeks found a deadlock over the size and shape of the fifth corona virus response plan, above the $ 3 trillion already enacted into law.
President Donald Trump said he was looking for four or five lawyers to replace the late Ruth Bader Ginsburg at the US Supreme Court and he would announce his candidate on Friday or Saturday.
As of 8:31 am ET, the Dow e-minis were down 626 points, or 2.27%. The S&P 500 e-minis were down 63.25 points, or 1.91%, and the Nasdaq 100 e-minis were down 182.25 points, or 1.67%.
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