Dow Falls 750 Points as Surge in Coronavirus Cases Worries Investors
COVID-19 case increases in California, Texas, and Florida caused major US indexes to dive on Wednesday, according to Markets Insider.
States that are reopening have seen large coronavirus outbreaks. Surges in California, Texas, Arizona, and Florida cases have many wondering if reopenings will be postponed. Surges in overseas cases have not alleviated any worry either.
Investors are also pricing in a new tariff announced by the Trump administration that would affect $3.1 billion of exports from France, Spain, Germany, and the UK. This move could start a new trade conflict and increasing the mounting pressure on US trade relations.
"I imagine there will be significant resistance to restrictions being reimposed but the fear is that they are left with no other option and the recent trends we're seeing in the data is a worry," said Craig Erlam, a senior market analyst at Oanda Europe.
Travel stocks were hit the hardest during Wednesday's session.
Here's where US indexes stood at 2:06 p.m. on Wednesday:
- S&P 500: 3,044.13, down 2.8%
- Dow Jones industrial average: 25,404.58, down 2.87% (745.33 points)
- Nasdaq composite: 9,990.86, down 2.13%
Oil prices also fell as investors worried about a decrease in demand. West Texas Intermediate fell to $38.90 per barrel. Brent crude, the international benchmark, fell to $41.10 at intraday lows.
Yesterday, US indexes closed in the green with tech names pushing the Nasdaq to a record high.