CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open Account
✖

Stocks Head Lower As Coronavirus Fears Dominate

By :   Fiona Cincotta , Senior Market Analyst
July 10, 2020 3:31 AM
A mixed close on Wall Street saw the Dow Jones and the S&P close in the red, whilst the tech focused Nasdaq surged to yet another record high. Traders are increasingly seeking the refuge from the coronavirus crisis in tech giants. Increased flows into the likes of Amazon, Alphabet and Apple come at a time when the chances of a V-shaped recovery look minimal and fears of rising coronavirus cases and a second lockdown are dominating.

Away from tech stocks on Wall Street were under pressure as US covid cases hit a new record of 60,000 a day, raising fears that the surging numbers could undermine the fragile economic recovery. The negativity spilled into Asia, even Chinese stocks declined for the first time since 29th June. European burses are pointing to a lower open in what is gearing up to be a risk off session. 

US Dollar Rises On Safe Haven Flows
Riskier assets such as equities are out of favour, as are riskier currencies. Meanwhile the safe haven US Dollar is gaining ground. The US Dollar jumped following jobless claims data in the previous session, which showed that whilst initial claims were at a 4 month low, the total number of people claiming unemployment benefits rose to 32.9 million stoking fears over the health of the recovery.

Whilst the US Dollar is surging, gold is keeping the inverse relationship with the greenback alive, slipping lower for a second straight session after rallying to $1816 earlier in the week, its highest level since 2011.

Oil Extends Losses
Oil is also trading on the back foot, extending losses from Thursday, amid fears a return to lockdown as US coronavirus infections reach a new daily record could dent demand. US crude fell 3.1% and through the key support at $40 on Thursday. WTI is adding to those losses down a further 1.5% today. 
The recent hit to demand from April’s lockdown is still very fresh in traders’ minds. Fears of a repeat, with a second lockdown are seeing traders sell out of oil bloated inventories are also acting as a drag. With little in the way of high impacting data, it seems unlikely that traders will find reason to bid up oil heading into the weekend.

WTI Chart


StoneX Financial Ltd (trading as "FOREX.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, FOREX.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date.


This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it. No opinion given in this material constitutes a recommendation by FOREX.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.


The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although FOREX.com is not specifically prevented from dealing before providing this material, FOREX.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. For further details see our full non-independent research disclaimer and quarterly summary.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Financial Ltd. StoneX Financial Ltd is a company incorporated in England and Wales with UK Companies House number 05616586 and with its registered office at 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is authorised and regulated by the Financial Conduct Authority in the UK, with FCA Register Number: 446717.

FOREX.com is a trademark of StoneX Financial Ltd. This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy. FOREX.com products and services are not intended for Belgium residents.

© FOREX.COM 2026