Stock benchmark continues sinking as virus cases surge
S&P 500 drops 3.5%
S&P 500 drops 3.5%
The Dow Jones Industrial Average dropped 943 points Wednesday as surging coronavirus cases in the U.S. and Europe threaten more business shutdowns and pain for the economy.
The S&P 500 dropped 3.5%, its third straight loss. The index has now given up 5.6% so far this week and is on track for its biggest weekly fall since March, when markets were in a downward spiral.
European markets also sank.
Crude oil prices fell sharply as investors anticipated that demand for energy will weaken along with the economy. Treasury yields fell as investors sought shelter in safer assets.
Stocks around the world tumbled Wednesday on worries the worsening pandemic will mean more restrictions on businesses and drag down the economy.
Coronavirus counts are also in much of the United States, and the number of deaths and hospitalizations due to COVID-19 are on the rise. Even if the most restrictive lockdowns don바카라 게임 웹사이트t return, investors worry that the worsening pandemic could scare away customers of businesses regardless and sap away their profits.
Companies broadly have not been getting as big a pop in their stock prices as they typically do after reporting healthier-than-expected profits. Analysts say that suggests good news on profits has already been built into stock prices and that the market바카라 게임 웹사이트s focus is elsewhere.
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Investors' hopes that Congress and the White House could soon offer more big support for the economy as it struggles through the pandemic have largely faded. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have continued their talks, but investors see little chance of a deal happening before Election Day next week.
Economists say the economy likely needs such aid after the expiration of the last round of supplemental unemployment benefits and other stimulus approved by Washington earlier this year.
Uncertainty about the upcoming presidential election has also been pushing markets around.
바카라 게임 웹사이트The market never likes uncertainty," said Stephanie Roth, portfolio macro analyst at J.P. Morgan Private Bank. "People are just taking profits ahead of the election, to some extent.바카라 게임 웹사이트
The race seems be getting tighter than it was just a few weeks ago, said Jamie Cox, managing partner for Harris Financial Group.
바카라 게임 웹사이트It has markets somewhat unnerved that the prospects of a contested election are back in the mix,바카라 게임 웹사이트 he said.
Cox said he expects more calm in the markets in November after the election passes and some of the uncertainty over a new aid package fades.
바카라 게임 웹사이트Aid is coming regardless. There바카라 게임 웹사이트ll be no political motivation to hold it back after the election,바카라 게임 웹사이트 he said. 바카라 게임 웹사이트There바카라 게임 웹사이트s plenty of desire to get money out to people so I think it will happen one way or another in November.바카라 게임 웹사이트