Home Business The deterioration of Covid-19 Pandemic causes the US and European stock markets to continue to dive
The deterioration of Covid-19 Pandemic causes the US and European stock markets to continue to dive

The deterioration of Covid-19 Pandemic causes the US and European stock markets to continue to dive

by YCPress

October 30. Foreign media said that with the increase in the number of Coronavirus infections and stricter lockdown measures, people’s concerns about the impact of the Pandemic on the economy have been intensified, and the US and European stock markets have plummeted.

According to a report on the Bloomberg News website on October 29, the S&P 500 Index fell 3.5% on the 28th, the largest drop since June, as the number of hospitalized patients with Coronavirus surged, especially in the Midwestern United States. 

Energy stocks are also one of the worst-performing sectors along with the decline in oil prices. Microsoft’s stock price fell due to disappointing performance expectations. The volatility index, which measures the expected volatility of the US stock market, rose to its highest level since June.

On the 28th, more than 90% of the constituent stocks in the S&P 500 Index fell.

The benchmark stock indexes of the United States and Europe have both fallen by more than 5% this week due to the surge in cases of Coronavirus infections and the failure of US lawmakers to reach a consensus on economic assistance plans before the November 3 general election. 

Analysts also warned that the turbulence may intensify before and after the US election. Some people say that the result of the general election is still a worrying possibility.

Lori Heinell, head of global investment at State Street Global Investment Management, said: “Obviously the election is still pending. Moreover, the Coronavirus pandemic in the United States and Europe is clearly accelerating and worsening, and there is a lack of stimulus measures.

We estimate that we are finding the final Prior to the medical solution, stimulus measures are still necessary for us to get through this period. Now is a triple blow.”

As German Chancellor Angela Merkel announced a month-long partial blockade to curb the spread of the virus, the Stoxx Europe 600 Index fell 3%, to its lowest point in five months. After the stock market closed, France implemented new blockade measures across the country.

Fearing that the worsening of the Pandemic would weaken demand, oil prices fell sharply. At the same time, the U.S. dollar soared and gold plummeted. The price of Bitcoin hit its biggest drop in a month.

According to a report on the US “Wall Street Journal” website on October 28, the US stock market continued to fall on the 28th, making this week the worst week since the end of March. 

The increase in new coronavirus infections has shaken investors’ confidence in the global economic recovery.

The Dow Jones Industrial Average fell 943.24 points, or 3.4%, to close at 26519.95 points, which was the fourth consecutive day of decline and the biggest one-day decline since June 11.

The Nasdaq Composite Index fell 426.48 points, or 3.7%, to close at 1,1004.87 points, narrowing the annual increase to 22.7%. Shares of Facebook, Alphabet Inc., Google’s parent company, and Twitter have all fallen more than 5%.

This week, a series of uncertain factors caused the stock market to fall, triggering investors’ discussion: This wave of selling means buying opportunities or a turning point in the market.

The increasing number of Coronavirus infections may necessitate stricter restrictions in the United States and Europe, which may bring setbacks to the fragile economic recovery. 

As the number of new infections reported by states in the United States continues to remain high, the number of new cases in the United States in a single day once again exceeds 70,000. Germany and France announced new lockdown measures on the 28th to prevent a rebound of the Pandemic.

Hugh Kimbell, global market strategist at JP Morgan Asset Management in the United States, said: “A month ago, the market said that the blockade will be limited and targeted, so the impact on the economy will be small. But now, we see It’s a wider concern that the blockade may be broader and have greater impact.”

Susan Webb, founder and chief investment officer of Appomattox Investments, said: “Investors are switching. With the sell-off in Europe, many people are cashing out in the US stock market. Big. The market also recognizes that Asia is recovering faster and has contained the Coronavirus Pandemic.”