Stocks Stumble After US Retirement Fund Delays Transfer To Fund With Chinese Companies, Abbott COVID Test Stumbles

Just hours after Abbott says U.S. FDA has issued Emergency Use Authorization (EUA) for the company’s molecular test for the novel coronavirus for use on its new Alinity m molecular laboratory instrument, Bloomberg headlines reporting that NYU data shows the Abbott Labs Test may yield false negatives (up to one third of COVID-19 cases missed).

The data is reportedly "preliminary" and not reviewed, but still - missing one-third of positives seems like something any "review" won't change too much.

This sent ABT prices lower...

Meanwhile, the US retirement investment board said has delayed the transition of USD 40bln international fund to track the MSCI index, including controversial Chinese companies, according to a statement, citing COVID-19 and new board nominations as being behind the delay

While this is a delay not a cancellation, it could still have an impact on Chinese companies, among others from the delay.

Also worth noting, overnight China's Foreign Ministry, on President Trump's efforts to push TSP fund to halt planned investments, said "wanton placement of obstructions on US investors runs counter to economic law", suggesting more escalation in the feud between the US and China are imminent.

The double-whammy of negative news took the steam out of the broader market:

And of course, all the market can do is scream for "moar" from The Fed - in this case - negative rates are back...

So much for Powell's desperate jawboning - the market will not be disappointed!!