Futures tried and failed to rebound from Wednesday’s rout as fears that the Brexit process was coming unhinged and growing pessimism for a fiscal deal in Congress offset optimism for a swift roll out of a COVID-19 vaccines while concerns about a double dip were set to grow after a report that shows another increase in weekly jobless claims. Not even the ECB’s imminent reveal of another €500 billion in QE helped push stocks higher.
The furious November rally in global equities which pushed stocks to record highs as recently as Tuesday, slowed this week as the pandemic causes even more shutdowns and negotiations over a U.S. aid package seem bogged down. That has investors counting on continued easing and bond buying by central banks to support risk assets and possibly reflation into 2021, including the ECB decision today. Nasdaq 100 contracts turned lower, accelerating its biggest drop in a month on news that Facebook was being sued by U.S. antitrust officials. The social media giant slipped further in pre-market trading on Thursday. Airbnb Inc. priced its long-awaited initial public offering above a marketed range to value the company at about $47 billion.
“We’ve risen so far so fast that it’s making investors cautious,” said Michael McCarthy, chief strategist at stockbroker CMC Markets in Sydney. “The fall in tech stocks was a bit of a concern, given that they’ve risen in all market weather over the last six weeks, so to see them come off might signal that we’re looking at a short- term corrective move.”