U.S. stock markets opened sharply lower on Monday before retracing some of their gains. Amid growing weakness in Asian and European equity markets, S&P 500 futures slid and is at risk of dropping further. The Dow Jones Industrial Average and the Nasdaq Composite are both in red. All three major U.S. indices are facing stiff resistance at their current levels.
COVID-19 continues to spread and is wrecking real financial damage on the global economy. These facts cannot be ignored, especially at the time when the whole world has been struggling with global lockdowns and uncertainty as there is no medical cure for this pandemic. Global equity markets continue to look at the strength of economic indicators and would prefer to concentrate on evidence that the virus is peaking or has passed its peak in certain countries and regions.
On analysis of the movements of S&P 500 futures, I find that the prevailing weakness in S&P 500 futures may continue to drag down SPX once again as same as in March 2020. Growing damage to economic activities looks evident enough to push the global economy into its deepest slump since the Great Depression of the 1930s.
Finally, I conclude that this series of global lockdowns may result in the next great depression in the absence of a successful medical cure for COVID-19. Secondly, Gold futures look ready for a fresh breakout from the lower levels amid growing weakness in global equity markets; confirms a steep downward move in S&P 500 futures.
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