Wall Street's main indexes were set to bounce on Tuesday following the benchmark S&P 500's worst day in a month as investors parsed through a deluge of corporate earnings, while bracing for volatility ahead of Election Day.
"This means that investor sentiment will be dominated by the resurgent coronavirus until at least the election day, as well company earnings", said Fawad Razaqzada, a market analyst with ThinkMarkets.
The market slide also coincides with another COVID-19 outbreak at the highest levels of United States government, infecting at least five aides or advisers to Vice President Mike Pence, who leads the White House's coronavirus task force.
"Those are the two biggest drivers of today's decline".
On Monday, in a thin-volume trading session, all three key indices of Wall St. fell across the board with benchmark S&P 500 reporting its steepest intra-session plunge in more than four weeks, as a likely second wave of pandemic outbreak in the United States and Europe alongside a lack of progress in U.S. stimulus talks in the Capitol Hill had poured fresh scorns over investors' sentiments.
Meanwhile, a fresh economic relief package to help combat the economic fallout from the coronavirus remains locked in a standstill. yet House Speaker Nancy Pelosi's spokesman said she is hopeful a deal can be reached before the election.
Oil prices sank in response to the rising infections around the globe, which are starting to cause the reinstatement of movement restrictions in some places. The economically sensitive industrials and financials also posted steep declines among S&P sectors.
The week marks one of the busiest of the third-quarter earnings season that will see results from mega-cap US tech firms including Apple Inc, Amazon.com Inc, Google-parent Alphabet Inc and Facebook Inc.
With the presidential election on Tuesday, former vice president Joe Biden leads President Trump by 9 percentage points nationally, 52 percent to 43 percent, according to an average of national polls since October 12.
Across the S&P 500, profit reports for the summer have been mostly better than Wall Street had feared, though they're still on pace to be more than 16% lower than year-ago levels.
Volume on US exchanges was 8.72 billion shares, lower than the 20-day average of 8.9 billion shares.
Software company Oracle Corp fell 3 percent after its German rival SAP abandoned medium-term profitability targets and cautioned its business would take longer than expected to recover from the pandemic hit.
Caterpillar Inc fell 2.2 percent and 3M Co slipped 1 percent after both the industrial companies reported lower quarterly earnings.
Declining issues outnumbered advancing ones by 6.6-to-1 on the NYSE and 0.3-to-1 on the Nasdaq. Open a free account with Stockal - India's first borderless investment platform.