Stocks Tumble As Coronavirus Cases Spike Again In U.S. And Europe

United Airlines employees operate at ticket counters at Chicagos OHare International Airport on Oct. 14, 2020. United and other airline stocks have actually been hard hit by the pandemic economic downturn.

Stocks suffered their worst day given that early September amidst a rise in coronavirus cases in the United States and Europe and declining optimism about another U.S. pandemic relief bill.

Nam Y. Huh/AP

The declines happened amid reports that coronavirus cases have surged in the United States, with more than 80,000 new infections reported on Friday and Saturday, while France and Italy signed up a record number of new cases.

“The failure of Congress and the Administration to settle on a further stimulus bundle prior to the election, will likely lead to more small company closures and state and regional layoffs in the fourth quarter, along with some slowing down in customer costs on the basics,” Kelly says.

United Airlines staff members work at ticket counters at Chicagos OHare International Airport on Oct. 14, 2020. United and other airline company stocks have been hard struck by the pandemic financial slowdown.

While House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin spoke numerous times about a costs last week, White House officials say significant differences stay between the two sides.

Nam Y. Huh/AP

“There continue to be wide swaths of the U.S. economy which merely can not return to regular in an intensifying pandemic, consisting of travel, leisure, entertainment, dining establishments and bricks-and-mortar retailing,” says David Kelly, chief global strategist at J.P. Morgan Funds.

However declines took location across the board. Energy business, which see their earnings fall when the economy slows, were down.

Companies slammed by the pandemic, such as airline companies and travel business, were amongst those hardest struck, with United Airlines down more than 7% in afternoon trading.

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On the other hand, the chances that Congress and the White House can concur on another stimulus costs are fading.

By early afternoon, the Dow Jones Industrial Average was down more than 800 points, a decline of almost 3%, and had lost ground for the month of October. The other major indexes were likewise down, though not as much.

Nam Y. Huh/AP