Stock futures fall as traders weigh stimulus prospects and increasing Covid-19 cases

Stock futures fell early Tuesday as traders kept an eye on negotiations for additional fiscal stimulus while the U.S. coronavirus caseload continues to rise. Dow Jones Industrial Average futures dipped 84 points, or 0.28%. S&P 500 futures lost 0.33% and Nasdaq 100 futures fell 0.25%.

Republican and Democratic leaders said Monday that Congress is trying to extend government funding for an additional week to try and strike a deal on new Covid-19 aid. The news came after a bipartisan group of senators unveiled a 8 billion stimulus proposal last week.

Calls for a new aid bill being pushed through before year-end have grown recently as U.S. employment growth continues to slow down and the number of Covid-19 cases keeps rising.

More than 14.8 million coronavirus cases have been confirmed in the U.S., according to data from Johns Hopkins University. The country’s daily infection rate, as a seven-day average, is also at an all-time high.

This latest spike in Covid-19 cases has led several states and cities to reimpose stricter social-distancing measures. New York Gov. Andrew Cuomo said Monday that New York City could lose indoor dining next week, adding that more severe restrictions would be imposed if hospitals reach a critical point.

The increase in Covid infections, coupled with the uncertainty around additional fiscal aid, knocked the Dow and S&P 500 off record levels on Monday. The Dow slid nearly 150 points, or 0.5%. The S&P 500 pulled back by 0.2%. However, the Nasdaq Composite rose 0.5% to a fresh record as traders sold value stocks in favor of high-flying growth names.

The iShares Russell 1000 Value ETF (IWD) dipped 0.6%. Its growth counterpart, the iShares Russell 1000 Growth ETF (IWF) advanced 0.4%.

Stock futures fall as traders weigh stimulus prospects and increasing Covid-19 cases, CNBC, Dec 8