The second wave U.S. outbreak
The second wave U.S. outbreak
On Monday, US time, the three major U.S. stock indexes closed down sharply. Among them, the Dow fell more than 650 points, or 2.29%, the biggest one-day drop since the beginning of September. The S&P 500 fell 1.86% and the Nasdaq fell 1.64%.
On Friday and Saturday, the number of new cases in a single day in the United States exceeded 83,000, which exceeded the previous highest value of approximately 77,300 cases in July.
At the moment, the US fiscal stimulus plan is pending. At the same time, pandemic has fought back fiercely. This has triggered widespread concerns among investors about the prospects of the US economic recovery. The three major US stock indexes fell all the way within two hours of opening. Travel stocks that were most affected by the pandemic fell sharply. The S&P 1500 Aviation Index, which is composed of airlines, fell 5.6%. In addition, Royal Caribbean International Cruises’ shares fell 9.65%, the largest drop among the S&P 500 index stocks. enterprise.
U.S. election countdown
Investors remain cautious on the sidelines
VIX index rose to nearly seven-week high
Analysts pointed out that another reason for the high volatility of U.S. stocks is that the overall trading volume is lower than the single-day average in October. The uncertainty of many factors including the U.S. election, corporate earnings, and economic prospects has made many market participants Maintained a cautious wait-and-see attitude. The VIX index, which measures market panic sentiment, has risen to a nearly seven-week high.
In addition, many large US technology companies will release their third-quarter financial reports this week. According to Wall Street forecasts, technology stocks will be the third sector to achieve year-on-year earnings growth outside of the healthcare and consumer staples sectors.
Europe’s largest technology company’s financial report falls short of expectations
The stock price plummeted and the market value evaporated over 30 billion US dollars
The three major European stock markets also fell sharply on Monday . Among them, the Frankfurt stock market in Germany closed down 3.71%, underperforming the other two stock markets, and hit a new closing low in the past four months.
The latest financial report of Europe’s largest technology company and the German software giant Si Aipu fell short of expectations. While it lowered its annual profit and revenue guidance, the company also believes that the impact of the coronavirus pandemic on the company’s business will continue until the middle of next year. Si Aipu’s share prices in the US and European stock markets fell nearly 23%, the largest intraday drop in 21 years, and its market value evaporated by more than US$30 billion . This also dragged down the European technology stock index by 7.4%.
pandemic in Europe and the United States raises concerns about fuel demand
International oil prices plummeted
Crude oil prices fell sharply on Monday. The prices of US WTI light crude oil futures and Brent crude oil futures both fell more than 3%, closing at US$38.56 and US$40.46 per barrel respectively. The market’s concerns about the pandemic suppression of fuel demand have resurfaced, and the news that Libya will increase production is the main reason for the pressure on oil prices.
Global stock markets generally fell
Boost the price of gold
Gold prices rose slightly on Monday, and gold futures for December delivery were quoted at $1,905.70 per ounce. Some analysts believe that the general decline in global stock markets promoted the rise of gold prices that day, but the uncertainty of the US general election and the development of the new crown pneumonia pandemic has made people’s safe-haven demand for the US dollar rise, thus limiting the attractiveness of gold.