· Dow drops more than 700 points in worst day since June 11 as virus resurgence concerns grow
Stocks fell sharply on Wednesday as the increasing number of newly confirmed coronavirus cases dampened expectations of an economic recovery.
The Dow Jones Industrial Average dropped 710.16 points, or 2.7%, to 25,445.94. The S&P 500 closed 2.6% lower at 3,050.33 while the Nasdaq Composite slid 2.2% to 9,909.17. The tech-heavy Nasdaq posted its first daily decline in nine sessions. It was the worst day for the Dow, S&P 500 and Nasdaq since June 11.
Florida said its confirmed cases jumped by 5,508 on Tuesday, a record, and now total 109,014. The state also said its positivity rate rose to 15.91% from 10.82%. Stocks fell to their session lows after Florida reported its latest case figures. At one point, the Dow had fallen more than 800 points on Wednesday.
California is one of the states that has also seen a dramatic spike in cases, adding a record of more than 7,000 in one day on Tuesday. In Texas, the Covid-19 number of Covid-19 cases jumped by 5,489. Meanwhile, New York, New Jersey and Connecticut ordered visitors from certain hotspot states to quarantine for 14 days.
· Stock futures fall slightly after a sharp sell-off on Wall Street amid rising virus fears
Stocks futures fell slightly were flat in overnight trading on Wednesday, following a steep market sell-off triggered by intensifying worries about a coronavirus resurgence.
Futures on the Dow Jones Industrial Average fell about 80 points. The S&P futures and the Nasdaq 100 futures dipped about 0.3% each. Trading volumes were thin.
The record spikes in new coronavirus cases in multiple states are damping hopes for a smooth economic recovery. California and Florida reported their biggest daily spikes in new coronavirus cases, while Houston said its intensive-care unit beds are near capacity. New York, New Jersey and Connecticut also ordered visitors from certain hotspot states to quarantine for 14 days.
· European stocks close sharply lower as surge in coronavirus cases spooks investors
European stocks closed sharply lower on Wednesday as a surge in coronavirus cases around the world spooked investors.
The pan-European Stoxx 600 provisionally closed down by about 2.7%, with all sectors and major bourses in negative territory. Autos stocks, which were over 4.5% lower, led the losses in the region.
Investor sentiment has been shaken by an uptick in the number of Covid-19 cases all over the world as economies emerge from lockdown. White House health advisor Dr. Anthony Fauci warned Tuesday that parts of the U.S. are beginning to see a “disturbing surge” of Covid-19 cases.
· Asia Pacific stocks slip following overnight Dow plunge; IMF slashes forecasts again
Stocks in Asia Pacific slipped in Thursday morning trade following an overnight plunge stateside that saw the Dow Jones Industrial Average falling more than 700 points.
South Korea’s Kospi led losses among the region’s major markets as it slipped 1.32%.
In Japan, the Nikkei 225 slipped 0.77% while the Topix index shed 0.7%.
Shares in Australia also declined, with the S&P/ASX 200 falling 0.91%.
Overall, the MSCI Asia ex-Japan index traded 0.44% lower.
Markets in China and Hong Kong are closed on Thursday for a holiday.
The moves stateside came following a surge in coronavirus cases in certain states, with Florida and California reporting a record number of new cases. More than 2.36 million coronavirus cases have been reported in the U.S. while at least 121,662 lives have been taken, according to data compiled by Johns Hopkins University.
Meanwhile, the International Monetary Fund slashed its economic forecasts again on Wednesday. The IMF now estimates a contraction of 4.9% in global gross domestic product in 2020, lower than the 3% fall it predicted in April.
“The Covid-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast,” the IMF said Wednesday in its World Economic Outlook update.
Reference: CNBC, Reuters
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