Recovery hopes revisited as stocks poised to tumble

Jun. 11, 2020 4:11 AM ETBy: Yoel Minkoff, SA News Editor180 Comments

U.S. stock index futures, along with global stocks, are taking another turn for the worse as investors cash out of an extraordinary rally following the latest comments from Fed Chair Jerome Powell.
While he vowed to keep stimulus aggressive "and keep interest rates near zero for years," he struck a cautious note on jobs, undercutting the hopes for a V-shaped recovery.
"My assumption is that there will be a significant chunk, well, well into the millions of people who don’t get to go back to their old jobs and there may not be a job in that industry for them for some time. It could be some years before we get back to those people finding jobs."
A resurgence in COVI9-19 infection rates is also hitting states that have recently reopened, prompting concern about a potential second wave as the total number of U.S. cases topped 2M.
Asia: Nikkei -2.8%; Hang Seng -2.3%; Shanghai -0.8%; Sensex -1.2%.
Europe: FTSE 100 -2.5%; CAC 40 -2.7%; DAX -2.6%.
U.S. futures: Dow -2.6%; S&P -2.1%; Nasdaq -1.5%.