The major U.S. index futures are currently pointing to a lower opening on Monday, with stocks likely to give back ground following the strong upward move seen last week.
Profit taking may contribute to initial weakness on Wall Street, as some traders cash in on last week's gains, which lifted the major averages to their best levels in nearly a month.
Lingering concerns about the economic impact of the coronavirus pandemic may also weigh on the markets, with the number of daily deaths from the disease in the U.S. reaching a record high of more than 2,000 on Friday.
However, White House health advisor Dr. Anthony Fauci expressed "cautious optimism" the outbreak is slowing down in an interview with CNN on Sunday.
Fauci noted that hospitalizations and intensive care admissions in the New York metropolitan area have not only flattened but stated to turn the corner.
"So, that's where we're hopeful. And it's cautious optimism that we're seeing that decrease," Fauci said. "And if you look at the patterns of the curves in other countries, once you turn that corner, hopefully, we will see a very sharp decline."
At the same time, Fauci cautioned that reopening the country will not be like flipping a light switch and will depend on the situation in different parts of the country.
Overall trading activity may be somewhat subdued, as many overseas markets are closed for Easter Monday holidays.
After showing an early move to the upside, stocks fluctuated over the course of the trading session on Thursday but largely maintained a positive bias. The advance on the day lifted the major averages to their best closing levels in a month.
The major averages all finished the day firmly in positive territory. The Dow advanced 285.80 points or 1.2 percent to 23,719.37, the Nasdaq climbed 62.67 points or 0.8 percent at 8,153.58 and the S&P 500 jumped 39.84 points or 1.5 percent to 2,789.82.
For the holiday-shortened week, the Dow spiked by 12.7 percent, the Nasdaq surged up 10.6 percent and the S&P 500 soared 12.1 percent.
The continued strength on Wall Street came as the Federal Reserve detailed additional actions to support the economy, overshadowing a report from the Labor Department showing another jump in first-time claims for unemployment benefits.
The Labor Department said 6.606 million people filed for unemployment last week, a decrease of 261,000 from the previous week's upwardly revised level of 6.867 million but well above economist estimates for 5.250 million new claims.
The spike in initial jobless claims in the latest week brings the total since the coronavirus-induced shutdown to 16.780 million.
However, any negative sentiment generated by the data was offset by the Fed announcing additional actions to provide up to $2.3 trillion in loans to support the economy during the ongoing coronavirus pandemic.
The Fed said the funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.
"Stocks are up because the damage to the economy - evident in claims - is beyond comprehension, while the response of the Fed is easier to understand," said Chris Low, Chief Economist at FHN Financial.
He added, "At some point, traders will have to come to terms with not just the Fed response but what they are responding to."
Traders also largely shrugged off preliminary data from the University of Michigan showing a record-breaking decline in U.S. consumer sentiment in the month of April.
The report said the consumer sentiment index plummeted to 71.0 in April after plunging to 89.1 in March. Economists had expected the index to tumble to 75.0.
Surveys of Consumers chief economist Richard Curtin noted the 30-point drop seen over the past two months was 50 percent larger than the prior record.
Gold stocks saw substantial strength on the day, resulting in a 10.1 percent spike by the NYSE Arca Gold Bugs Index. The index ended the session at its best closing level in a month.
The rally by gold stocks came amid a sharp increase by the price of the precious metal, with gold for June delivery skyrocketing $68.50 to $1,752.80 an ounce.
Significant strength was also visible among banking stocks, as reflected by the 6.8 percent jump by the KBW Bank Index.
Interest rate-sensitive commercial real estate, utilities and housing stocks also turned in some of the market's best performances on the day.
Most of the other major sectors also moved to the upside, although notable weakness emerged among semiconductor and oil stocks.
Commodity, Currency Markets
Crude oil futures are rising $0.25 to $23.01 a barrel after plunging $2.33 to $22.76 a barrel last Thursday. Meanwhile, after skyrocketing $68.50 to $1,752.80 an ounce in the previous session, gold futures are sliding $15.70 to $1,737.10 an ounce.
On the currency front, the U.S. dollar is trading at 107.89 yen versus the 108.47 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0920 compared to Thursday's $1.0937.
Asia
Asian stocks fell in thin holiday trading on Monday as the global Covid-19 death toll increased to 114,245 and overall infections climbed to 1,850,527, according to data compiled by the Washington-based Johns Hopkins University.
The United States now accounts for the highest number of cases and deaths in the world at 557,571 and 22,108, while France, Germany, Italy and Spain reported a slowdown in new coronavirus cases, offering investors some relief.
A landmark OPEC+ output cut agreement failed to pacify investors amid mounting worries over the coronavirus crisis.
China's Shanghai Composite Index dropped 13.58 points, or 0.5 percent, to 2,783.05 after new daily coronavirus cases approached a near six-week high in the country.
A total of 108 new coronavirus cases were reported in mainland China on Sunday, up from 99 a day earlier and marking the highest daily tally since March 5.
Imported cases accounted for a record 98 as China's northeast Heilongjiang province, which borders Russia, became the new battleground against the coronavirus.
Markets in Hong Kong, Australia and New Zealand were closed for Easter Monday, while Thailand was shuttered for the Songkran Festival.
Japan's Nikkei 225 Index ended down 455.10 points, or 2.3 percent, at 19,043.40 as the yen gained ground versus the dollar and investors were disappointed over a lack of asset-buying from the Bank of Japan. The broader Topix closed 1.7 percent lower at 1,405.91.
Market heavyweight SoftBank tumbled 3.4 percent and Fast Retailing lost 3.8 percent. Exporters such as Canon, Sony, Honda Motor and Panasonic fell 2-3 percent, while in the tech space, Advantest lost over 3 percent and Tokyo Electron shed 3.8 percent.
Seoul stocks tumbled even as new virus cases in the country stood around 30 for the third straight day. The benchmark Kospi fell 34.94 points, or 1.9 percent, to 1,825.76. Kia Motors shares plunged 4.8 percent after reports that the automaker is considering suspending operations at three of its domestic factories.
Yonhap News Agency quoted the Korea Centers for Disease Control and Prevention as saying that starting from today, all arrivals from the U.S. to South Korea will be tested for the novel coronavirus within three days of self-isolation.
Europe
European markets remain closed today for Easter Monday.
U.S. Economic Reports
No major U.S. economic data is scheduled to be released today, although reports on retail sales, industrial production and housing starts may attract attention in the coming days.
Stocks In Focus
Shares of Gilead Sciences (GILD) are moving notably higher in pre-market trading after an analysis published in the New England Journal of Medicine said the biotechnology company's remdesivir showed promise as a coronavirus treatment.
Restaurant chain Dunkin' Brands (DNKN) is also likely to see initial strength after Credit Suisse upgraded the company's stock to Outperform from Underperform.
On the other hand, shares of Caterpillar (CAT) may come under pressure after Bank of America Securities downgraded its rating on the heavy equipment maker's stock to Underperform from Neutral.
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