US pre-open: Futures move lower as new weekly coronavirus cases hit 500,000

Wall Street futures had stocks opening sharply lower ahead of the bell on Wednesday as new Covid-19 cases continue to rise across the US.

As of 1220 GMT, Dow Jones futures were down 1.64%, while S&P 500 and Nasdaq-100 futures were 1.36% and 1.15% weaker, respectively.

The Dow Jones closed 222.19 points lower on Tuesday as stocks turned in a mixed performance amid an ever-increasing number of new Covid-19 cases that continued to weigh on sentiment.

In focus on Wednesday, news that the number of new cases of Covid-19 across the US had risen above 70,000 yet again, according to Johns Hopkins University, taking the weekly average to a record high of more than 500,000.

The upcoming US general election on 3 November was also drawing an amount of attention from investors, with Democratic challenger Joe Biden maintaining a lead over incumbent Donald Trump in the polls, albeit a narrower one than previously.

Elsewhere, tech shares were in focus as chief executives of major firms Alphabet, Facebook and Twitter will appear before a Senate Commerce subcommittee hearing.

SpreadEx's Connor Campbell said: "Grim. That's the only word that can describe the markets on Wednesday morning, investors' Covid-19 fears attacking stock prices in ways not seen since the start of the Western phase of the pandemic back in March.

"As has been the case since March, investors' concerns aren't over the number of daily cases and deaths per se, but the severity of the restrictions that will greet each new leap and the crushing impact said measures will have on the global economy. Just when countries had tried to get back to their feet during the third quarter, as it set to be evidenced by the latest GDP figures on Thursday and Friday. Bags packed and gas tank full, investors fled the markets with the speed and panic of a family trying to escape a disaster scene."

On the macro front, mortgage applications rose 1.7% in the US during the week ended 23 October, according to the Mortgage Bankers Association, rebounding from a 0.6% drop in the previous week. Applications to refinance a home loan advanced 2.5%.

Still to come, September's advance goods trade balance and wholesale inventories data will be released at 1230 GMT.

In the corporate space, Spirit Airlines, Boeing, Western Digital, Ford Motor, Six Flags, Gilead Sciences, Etsy and eBay were all slated to report earnings on Wednesday.