Stock futures fell in overnight trading on Sunday, pointing to more losses ahead, as investors grapple with signs of a second wave of coronavirus cases amid the reopening economy. Futures on the Dow Jones Industrial Average dropped about 350 points. The S&P 500 and Nasdaq 100 futures were also down 1.5% and 1.2%, respectively. The overnight action in futures markets followed a big pullback last week triggered by rising fears of a resurgence in the virus as well as investors’ profit-taking after the massive comeback. (CNBC)

The U.S. Treasury is sitting on a near-record $1.5 trillion pile of cash, and what it does with it has become the biggest wild card for funding markets as quarter-end approaches. The dept’s initiative to ensure it always has enough money on hand to pay its bills is once again making it harder for the Fed to gauge how reserves in the banking system will unfold at a crucial juncture. That’s because swings in the govt’s cash on deposit at the Fed have a direct impact on the level of reserves -- effectively draining bank reserves as the amount climbs. And the sheer size and volatility of the Treasury’s buffer have increased along with fed deficits that are swelling because of pandemic-triggered stimulus spending. (Bloomberg)