· Dow, S&P 500 fall on fears over virus resurgence but Nasdaq ends at record high
The S&P 500 and Dow dropped on Thursday as investors worried about another round of business shutdowns to contain a surge in coronavirus cases and began to shift their focus to earnings, while the Nasdaq hit another record closing high.
The Dow Jones Industrial Average .DJI fell 361.19 points, or 1.39%, to 25,706.09, the S&P 500 .SPX lost 17.89 points, or 0.56%, to 3,152.05 and the Nasdaq Composite .IXIC added 55.25 points, or 0.53%, to 10,547.75.
The United States saw more than 60,000 new COVID-19 infections on Wednesday, setting a single-day global record while Florida and Texas reported a record one-day increase in deaths.
Investors also began to turn their focus to the second-quarter earnings season, which shifts into higher gear next week. S&P 500 companies are expected to post a more than 40% decline in year-over-year earnings, which would be the biggest quarterly profit drop since the 2008 financial crisis, based on IBES data from Refinitiv.
· European markets close lower as virus fears offset recovery hopes
European markets closed lower Thursday as fears over rising U.S. coronavirus cases appeared to offset hopes of a potential economic recovery.
The pan-European Stoxx 600 closed 0.8% lower provisionally, with utilities stocks leading the losses as most sectors traded in negative territory. Technology shares bucked the trend with a 0.8% gain.
Market sentiment has been rattled of late by the persistently rapid spread of the coronavirus in the U.S., where the number of cases surpassed the 3 million mark on Wednesday, according to Johns Hopkins University. Stocks in Europe had earlier traded higher amid optimism over the prospects of a recovery for the global economy, as signs of progress emerge in data and scientific discovery.
Gilead Sciences on Wednesday began testing an inhalable form of its antiviral Covid-19 drug remdesivir which can be administered outside hospitals. Meanwhile Reuters reported, citing a European Commission source, that the Commission has secured deals for experimental treatments from Merck and Roche.
· Asia Pacific markets trade lower as ‘coronavirus anxiety’ dominates sentiment
Asia Pacific markets slipped in early trade on Friday, following a mixed overnight on Wall Street where coronavirus concerns pushed investors into tech stocks.
Australia’s benchmark ASX 200 fell 0.45%, with most sectors trading lower. The heavily-weighted financials subindex was down 0.65% while the energy subindex declined 1.57%.
The Nikkei 225 in Japan was fractionally lower while the Topix index fell 0.35%. In South Korea, the Kospi index was down 0.39%.
Reference: CNBC, Reuters
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