Reference News Network reported on October 28. Comprehensive foreign media reported that due to the sharp increase in the number of Corona cases in the United States and most of Europe, the US stock market and European stock markets have plummeted recently.
According to a report on the website of the Financial Times on October 27, the U.S. Wall Street stock market fell sharply on Monday following the European stock market. The reason was that investors worried that the increasing number of Corona virus infections would curb business activities, and the United States introduced a financial rescue plan before the general election. Hope is very slim. The Standard & Poor’s 500 index closed down 1.86% on Monday. All sectors fell generally, and stocks in the travel and leisure industry were under strong selling pressure.
The European market also experienced a bleak day, the German DAX index fell 3.7%.
David Kelly, chief global strategist at JP Morgan Asset Management, said: “Pretending that the pandemic and its economic pain is about to end will not do any good… Investors, policymakers and the public should all accept the reality.”
According to a report from the Associated Press in New York on October 26, the US stock market fell sharply on Monday as the disturbing increase in the number of Corona pandemic cases triggered investor selling sentiment. At the same time, Wall Street is increasingly suspicious about the fact that the US government will introduce more economic stimulus measures before the election day.
According to reports, the S&P 500 Index fell nearly 1.9% on Monday, the biggest one-day drop in more than a month. The Dow Jones Industrial Average fell by more than 960 points at the height of the sell-off. Technology company stocks led the large-scale sell-off to a large extent, but declines in communications services, financial and industrial stocks also contributed to driving down the market. Energy stocks also fell in sync with crude oil prices.
The report also noted that most stock markets in Europe and Asia have fallen. Another sign that needs to be vigilant is that US Treasury yields have fallen after rising to their highest level since June this year.
Rose Mayfield, an investment strategy analyst at Baird Corporation, said: “Misfortunes never come singly. The record number of cases and the repeated closure measures across Europe are becoming the focus of media attention. Oil prices have fallen due to some supply and demand issues. Economic stimulus. The hope for the launch of the plan seems to be diminishing day by day, at least until the election day.”
The Associated Press reported that the S&P 500 index fell to 3,40.97 points, down 64.42 points. The Dow Jones Index fell to 27685.38 points, down 650.19 points, or 2.3%. The Nasdaq Composite Index fell to 11358.94 points, down 189.34 points, or 1.6%. The stocks of smaller companies also fell sharply. The Russell 2000 Index fell to 1605.21 points, down 35.29 points, or 2.2%.
Reports believe that the number of Coronavirus cases has risen sharply in the United States and most of Europe, raising concerns that the still weak economy will suffer more damage.
In addition, hopes that the U.S. government will provide more support to the economy in the near future are dashing a little. According to an aide to the Speaker of the House of Representatives, Nancy Pelosi, Pelosi and Treasury Secretary Steven Mnuchin could not agree on the phone on Monday. The two people have been negotiating issues including a possible agreement, which is to distribute cash payments to most Americans, restart supplementary benefits for the unemployed, and provide financial support to schools.
According to reports, the partisan divisions in the U.S.
Congress are still serious, and there is little time left for action before the November 3 election day. The prospect of more economic stimulus measures in the short term is getting bleak, and the worries that have caused the S&P 500 index to experience a 0.5% weekly decline last week, the first decline in the past 4 weeks.
Since the United States relaxed travel restrictions imposed across the country, the economy has recovered slightly. Economists expect a report released on Thursday to show that after the US economy contracted 31.4% in the second quarter, the annual growth rate in the third quarter will reach 30.2%.
But after the last round of supplementary unemployment benefits and other economic stimulus measures approved by Congress earlier this year, the momentum of economic growth has slowed recently.