Stocks Sink As Rising Coronavirus Cases Deepen Fears About Economy

The U.S. flag hangs outside the New York Stock Exchange on Oct. 14, 2020, in New York. Stocks sank on Wednesday as increasing coronavirus cases startled investors.

Frank Franklin II/AP

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Frank Franklin II/AP

The U.S. flag hangs outside the New York Stock Exchange on Oct. 14, 2020, in New York. Stocks sank on Wednesday as rising coronavirus cases scared financiers.

Frank Franklin II/AP

In Illinois, which announced new pandemic guidelines on Tuesday, authorities are cautioning about a renewal of deaths and infections.

The stock exchange losses comes a day ahead of the U.S. third-quarter gdp data. The economy is expected to have actually grown a minimum of at a yearly rate of 30% in the July-September quarter, in the last report card before the election.

Stocks fell dramatically as soon as the market opened on Wednesday as a spike in coronavirus cases deepened worries about the worldwide economy.

Financial experts caution that the surge in development reflects suppressed activity after lockdowns previously this year, and worries are resurfacing about how a brand-new wave of coronavirus cases would impact the global economy.

Now, the coronavirus seems rising again, with 73,200 brand-new cases in the United States on Tuesday alone, according to Johns Hopkins University.

Losses in markets were prevalent, with airlines and leisure stocks continuing to extend recent losses. United Airlines was down 4.6% while Marriott International was down 3.2%.

Boeing said on Wednesday it plans to cut countless extra jobs through next year, due to the fact that of the decline in flight. The plane maker reported its fourth quarterly loss, sending its shares down 2.5%.

The Dow Jones Industrial Average was down 630 points, a decline of 2.3%, and is in unfavorable territory for the month. The S&P 500 fell 2.4%, its third successive decline.

A comparable rise is occurring in Europe. France and Italy have actually seen a record spike in new cases, and Germany has proposed closing bars and dining establishments for a month.

Investors have been facing a wave of unpredictability thats already sent the market lower in recent weeks. The White House and Democrats in Congress have actually struggled to settle on a new stimulus bill, and the possibility of an objected to election makes the likelihood of a contract even murkier.

“If I have not made it clear, we remain in that second wave that we have actually been mentioning for months,” said Dr Ngozi Ezike, director of the states department of public health.

The continuous slowdown in financial activity is taking a toll on companies, especially those that depend upon travel and tourism.