STOCKS SINK AS COVID-19 CASES SURGE IN US, OTHER COUNTRIES
Stocks on Wall Street fell sharply Friday as confirmed new coronavirus infections in the US hit an all-time high, prompting Texas and Florida to reverse course on the reopening of businesses, Alex Veiga and Damina J. Troise reported for the Associated Press (AP) on Saturday, June 27, 2020.
The combination injected new jitters into a market that’s been mostly riding high since April on hopes that the economy will recover from a deep recession as businesses open doors and Americans begin to feel more confident that they can leave their homes again.
The S&P 500 dropped 2.4%, giving up all of its gains after a rally the day before. The sell-off capped a choppy week of trading that erased the benchmark index’s gains for the month. Even so, the S&P 500 is still on pace for its best quarter since 1998. The S&P 500 fell 74.71 points to 3,009.05. The Dow Jones Industrial Average had its worst day in two weeks, losing 730.05 points, or 2.8%, to 25,015.55. The Nasdaq, which hit an all-time high earlier this week, dropped 259.78 points, or 2.6%, to 9,757.22. Major indexes in Europe closed mostly lower, and Asian markets finished mostly higher.
Bill Northey, senior investment director at US Bank Wealth Management, said a resurging pandemic calls into question how vigorous the recovery will be. “We have to acknowledge there’s a high degree of uncertainty about how this is going to progress for the balance of the year,” he added.