Second Wave of Coronavirus Worries Investors

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as a second wave of coronavirus worries investors. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Stock futures flat following two days of losses for S&P 500 and Dow

Stock futures opened flat in overnight trading on Wednesday as investors evaluate the pace of economic recovery. Futures on the Dow Jones Industrial Average rose just 8 points, and the S&P 500 and the Nasdaq 100 futures were also flat.

The S&P 500 (SPY) dropped -5.89% today. All 11 sectors landed deep in the red as shown below in the sector graph. Losses ranged from -9.42% to -3.79%, check sector graph for specifics.

The Dow Jones index plummeted -1861 points (-6.90%) to close at 25,128. The Nasdaq lost -527 points (-5.27%) to settle at 9,492.

Second Wave of Coronavirus Worries Investors

All 3 major averages gave back at least 5% on Thursday as a possible second wave of the coronavirus troubled investors enough to hit the sell button.

Concerns about a second wave of coronavirus cases have risen as U.S. states push deeper into reopening. Texas has reported three consecutive days of record-breaking Covid-19 hospitalizations. Nine California counties are reporting a spike in new coronavirus cases or hospitalizations of confirmed cases, AP reported Wednesday. Treasury Secretary Steven Mnuchin told CNBC’s Jim Cramer, however, that “we can’t shut down the economy again.”

Both the S&P 500 and the Dow are still up more than 37% from their coronavirus intraday lows. The incredible comeback started with investors betting on technology companies like Amazon that were doing well despite the pandemic, but in the last month reopening bets like airlines have been the biggest gainers. Now investors are rotating back into those tech names and taking profits in the rest of the market.

Thursday’s moves also followed the Federal Reserve warning on Wednesday the U.S. economy will contract by 6.5% in 2020 before expanding by 5% next year. The central bank also said it will keep rates at currently low levels through 2022.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers.

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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6/11/20

S&P 500 Sector Graph

Second Wave of Coronavirus Worries Investors

S&P 500 (SPY)

Second Wave of Coronavirus Worries Investors

Communication Services (XLC)

Second Wave of Coronavirus Worries Investors

Consumer Discretionary (XLY)

Second Wave of Coronavirus Worries Investors

Consumer Staples (XLP)

Second Wave of Coronavirus Worries Investors

Energy (XLE)

Second Wave of Coronavirus Worries Investors

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Financials (XLF)

Second Wave of Coronavirus Worries Investors

Real Estate (XLRE)

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

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Technology (XLK)

Second Wave of Coronavirus Worries Investors

Utilities (XLU)

S&P 500 Sector Heat Map

 

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