Daily Market Color July 6, 2020Risk Assets Start Week Higher Despite Virus Spread Risk assets poised to start the week on a high note after holiday weekend. Despite the continued rise in global virus cases, equities are sharply higher to start the day as the White House and Congress continue to pledge policy support. On Saturday evening, President Trump continued to use a positive tone when discussing the virus, reassuring Americans that “we’ll likely have a therapeutic and/or vaccine solution long before the end of the year.” Equities are set to extend Thursday’s gains, with the S&P 500 and DJIA closing 0.5% and 0.4% higher. Treasury yields and swap rates fell moderately across the curve on Thursday — the 10-year trading higher this morning at 0.69%. Virus continues to spread rapidly across majority of states. Many states experienced new records in daily cases, with Florida becoming the first state to report a daily increase of over 10,000 since New York did earlier this year. Virus cases continue to spread in other countries as well, with parts of Spain and China reinstating lockdown measures. According to the World Health Organization, global infections hit a new record high on July 4th with a disproportionate amount of cases in Brazil and the US. Global cases are now nearing 11.3 million with fatalities topping 527,000. Nonmanufacturing data is expected to rise in June. Released later this morning by the Institute for Supply Management, the composite nonmanufacturing index is expected to reflect a rebound in June, rising to 49 from last month’s 45.4. Though the level is not expected to crossover to the expansionary zone (above 50), the figure is forecasted to show a return in activity in the services and construction sectors after lockdown measures pulled the index lower the last few months.