Reuters Futures tracking the bluechip Dow fell 1 on Monday, with economylinked value and travel stocks taking a hit after a spike in global COVID19 cases raised fresh concerns about slowing economic growth.
New U.S. COVID19 cases surged 70 last week compared with the prior seven days to an average of 30,000 new infections a day, fueled by the Delta variant. Deaths rose 26 weekoverweek to an average of 250 lives lost a day, mostly in unvaccinated patients.
Shares of travel companies, which took a hammering last year during lockdowns but have climbed recently on reopening hopes, led declines before the opening bell.
Airline operators and cruiseliners including Southwest Airlines Co, Delta Air Lines Inc, United Airlines, American Airlines, Royal Caribbean Group, Carnival Corp and Norwegian Cruise Line dropped between 2.0 and 3.6.
Ratesensitive lenders Bank of America Corp, JPMorgan Chase Co, Goldman Sachs Group Inc, Morgan Stanley and Citigroup Inc all shed about 2 each, tracking a fall in the benchmark 10year Treasury yield to midFebruary lows. US
The peak of economic growth rates is behind us and growth worries are back. The good news is that even if the peak of some economic indicators is behind us, equities should continue to perform positively in the medium term in a positive economic environment, Berenberg strategists said in a note.
However, high valuations, COVID19 fears, low trading volumes over the summer and high investor equity allocations argue against…