The Dow Jones Industrial Average fell by more than 700 points this week as daily coronavirus infections continue to rapidly increase. "The S&P 500 fell 2.4% as of the 4 p.m. ET close of trading. The Dow lost 730 points, or 2.8%. The Nasdaq Composite fell 2.6%", the Wall Street Journal reports.
The U.S. had nearly 40,000 new infections on Thursday in what was a new daily record. Nearly half of these cases came from states like Texas, Arizona, Florida and California. Texas governor Greg Abbott issued an executive order limiting certain business operations in response to the spike in cases.
Senior economist at Lloyds Banking Group said, "Right now, the market is sort of on hold". He claimed investors "are really looking for guidance on what's the next stage: Will we see signs of recovery or is there a danger things slip again?"
"Investors have been closely tracking the spread of the virus and developments world-wide have moved markets in recent weeks. Public-health officials said only about 1 in every 10 Covid-19 cases in the U.S. has been identified, and more Americans remain susceptible to the virus."
There was optimism in the markets as many states had substantially reopened and consumer spending was increasing. However, investors are now starting to worry as cases increase and certain states are considering reimplementing lockdown measures.