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US stock futures opened flat on Tuesday night after the release of coronovirus treatment data from Regeneron Pharmaceuticals, while traders were awaiting a presidential debate for the first time.
The Dow Jones Industrial Average Futures declined by just 39 points, or 0.1%. The S&P 500 and Nasdaq 100 futures also slipped 0.1%.
After the closing bell, Regeneron stated that its REGN-COV2 drug reduces viral levels and improves symptoms in nonhospitalized coronovirus patients. George D., Chief Scientific Officer at Regenon. “The greatest treatment benefit was in patients who did not respond to their effective immune response,” Yanopopos said in a statement, suggesting that REGN-COV2 may provide a therapeutic option for a naturally occurring immune response. ”
Regeneron’s announcement came on Tuesday following concerns over the perception of a virus resurgence market, which led to a three-day win streak leading to major averages. The Dow plunged more than 100 points or 0.5%. The S&P 500 also slipped 0.5% and the Nasdaq Composite slipped 0.3%.
New York City Mayor Bill de Blasio said the city’s daily positive rate of coronovirus tests is above 3% for the first time in months.
“Children are returning to school in Europe and the United States,” Terry Sandwein, chief equity strategist at US Bank Wealth Management, wrote in a note. “We expect the United States to continue its slow pace of economic recovery, although virus growth and a soft labor market are threats.”
Futures were kept in check for the first presidential debate between President Donald Trump and Democratic candidate Joe Biden, which is set to begin at 9 a.m. ET. According to RealClearPolitics, Biden debated in recent elections with an average gain of 6.1 percentage points.
Many market strategists have cited uncertainty around the election, as there is a major headwind for the market with each risk and benefit before the end of the year. Some investors have voiced concern about a possible Biden win as they fear it could lead to higher corporate taxes and regulations. But at the same time, it may reduce concerns about trade war and the lack of incentives to strengthen the economy in the wake of coronovirus.
Investors are also concerned that the race may be even closer after the debate, leaving potential for a body election process where the November 3 result is too close and neither candidate wins. This uncertainty can especially dominate the market.
Fundstrat Global Advisors’ Washington policy strategist Tom Block told clients about the debate. “The president, on the other hand, is a professional entertainer and loves the camera … but the president is so confident in his ability to argue that he is unlikely to devote much time to preparation.”
“There will be hours of mock debate sessions and execute a carefully thought-out strategy, while instinct is known to kill the president,” said Biden.
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