Stock futures sank Monday morning, following global equities lower and setting the three major indices up to extend last week’s sharp declines. The early moves lower came as concerns over stagnating coronavirus case improvement stoked fears of more lockdowns, and as political uncertainty nudged investors away from risk assets.
Dow futures sank more than 500 points, or 1.9%, Monday morning, adding to a cumulative more than 350-point slide in the index from Thursday to Friday last week. Futures on the S&P 500 were down more than 1.5% after ending last week at its lowest level in six weeks last week. As of Friday’s closing level, the S&P 500 was down more than 7% from its recent record high from Sept. 2.
“So far, the market has over-shot our expectations for a 4% to 6% haircut from recent highs on near-term extended valuations, as well as economic and Covid-19 risks. That