Australian shares are set to rebound this morning, as the market tries to claw back some of its heavy losses in the past four days.The Australian dollar fell to 71.7 US cents as the greenback continues to recover.
It comes as Wall Street snapped its four-day losing streak, even as a likely delay in further stimulus for the United States and a sharp increase in the number of COVID-19 cases dampened hopes of a faster economic recovery. Investors are now bracing for an extended period of market volatility on concerns over growing political uncertainty in Washington that has been sharpened by last week's death of Supreme Court Justice Ruth Bader Ginsburg.
"All the political energies are going to be directed towards the next Supreme Court nomination," said Mike Zigmont, head of trading and research at Harvest Volatility Management in New York.Tech reboundsThe S&P 500 lifted to 3,316. The benchmark index was 9 per cent below the record high it hit on September 2, putting it a little more than a percentage point away from sliding into correction territory.
"The market is looking for some stability," said Kenny Polcari, chief market strategist at SlateStone Wealth in Florida.Tesla fell 5.6 per cent after its chief executive Elon Musk warned about the difficulties of speeding up production, as an expert cautioned the electric carmaker's increased reliance on large-scale aluminium parts could bring new manufacturing challenges.