Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dow Bleeds on Growing Lockdown Fears

Published 10/28/2020, 01:18 PM
Updated 10/28/2020, 02:58 PM
©  Reuters

© Reuters

By Yasin Ebrahim

Investing.com – The Dow nursed heavy losses Wednesday on growing worries about the recovery of the global economy as Covid-19 cases continued to spike, with parts of Europe set to resume lockdown measures.

The Dow Jones Industrial Average fell 3.01%, or 825 points. The S&P 500 was down 2.98%, while the Nasdaq Composite slumped 2.94%.

France is expected to impose a lockdown to stem a surge in infection in recent weeks, according to Reuters. Germany, the engine of the euro-area economy, said it would begin a one-month partial lockdown starting Monday.

In the U.S., meanwhile, there are signs some areas are considering rolling back the easing of lockdown measures after Chicago prohibited indoor dining.

Global infections have topped 44 million, with more than 350,000 cases reported a day earlier.

The selling in the broader market was led by technology as stalwarts come under the spotlight on Capitol Hill ahead of key earnings reports from Amazon, Facebook, and Google.

The chief executives of Facebook, Twitter and Google are making their case to lawmakers to uphold section 230 of the Communications Decency Act, a law that protects platforms against legal liability for content generated by its users.

Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN), Facebook (NASDAQ:FB) (NASDAQ:GOOGL) and Microsoft  (NASDAQ:MSFT) were deep in the red, with latter down 4% despite firmer quarterly results.

Wall Street, however, continued to give Microsoft their vote of confidence as its cloud business continued to grow.

"Overall, we believe Microsoft’s results (especially post SAP’s guide down) will assuage some investor concerns around the IT spending backdrop," Credit Suisse (SIX:CSGN) said after raising its price target on the stock to $235 from $225.

With the impact of the pandemic gathering pace, cyclical stocks – those linked to the economy - also played a meaningful role in the selloff, with consumer discretionary and energy among the biggest decliners.

Energy fell nearly 3%, led by a sharp decline in oil prices as data showing a larger-than-expected weekly build in U.S. inventories exacerbated concerns about the demand outlook.

Industrials continued to bleed, led by fall in airlines, with United Airlines (NASDAQ:UAL) and Boeing (NYSE:BA) falling more than 3% despite the latter reporting a smaller than expected loss of $1.39 per share for the third quarter.

General Electric (NYSE:GE) sidestepped the selling, up 7% after reporting a surprise third-quarter profit.

Elsewhere on the earnings front, United Parcel Service Inc (NYSE:UPS) fell 8% as a lack of guidance and higher costs overshadowed third-quarter results that topped analysts' estimates.

Latest comments

On the contrary, the administration know it is nothing too worrying! Most media are corrupted by CCP and the Democrat, this is the biggest fake news and move to influence the president election, the one of the most dirty ones I have ever seen!
Shush
I cannot agree the title. From the stock level, I dont see investors are spooked by possible lockdown! This is misleading! The drop is broad , so most dropped just a little. Nothing worrying! Correction possibly not completed!
Donny has really done it this time. Mark Meadows, Donny’s current chief of staff, admitted that the administration “can no longer control the virus.” So they’re waving the white flag and surrendering to the enemy. But on top of that, last night Donny flies into Nebraska in a fruitless attempt to capture one electoral vote. He speaks for a while and then jets back out.....and leaves 100s of rally goers stranded in sub-freezing temperatures for many hours 4 - 5 miles from their cars. Why? MAGA bused everyone 4 miles from the car park and then couldn’t get the buses back to the rally to transport the folks back to their cars. This totally epitomizes the ineptitude of the Trump administration for the past 4 years. Donny cares only about himself and cares nothing for the Corn Huskers left behind. Disgusting!
yup.
why don't you ever right the truth. PONZI GETTING SLAUGHTERED BECAUSE NO MORE FUNDING BY FASCIST GOV
if you WRITE it, that would even be better
Biden win and you can expect both a huge stimulus bill and probably some national lockdown along with mandatory mask usage or you will be fined, because this is America...(home of the free unless it's up to the democrats and it revolves around healthcare).
Republicans do far more to try and control people and their bodies. Give me a break.
unite... No Lockdown!
tomorrow Indian nifty also will surge as weaken globle market
The worst is yet to come. We haven't had a limit down overnight yet or a 5% down day yet.Panic selling has been studied thoroughly and nothing stops it until all the buyers are gone.
worse yet to come? why?  only tech stocks are high, most of economy stocks are way lower than they were on march, so not sure if theres long way down still
The only force that moves this markets is stimulus and the bad news is that it won’t be coming anytime soon. Imagine if elections results take weeks to come out, stimulus will be no one priority. Pretty dangerous for the markets ...
it´s wednesday man!
All this selling and NASDAQ is still at 11,100. We've got a lot more room for correction!!
Increasing virus cases and no stimulus to help businesses. Not looking good
Theory: FED is taking their (manipulation) money out of companies and buying bonds because they see too much risk.
but then it would be already bellow the march throught.
Thats not how any of this works
Some polls have Biden in the lead... im sure that doesn’t have anything to fo with it...
Check out green stocks.
market will recover very sharply in next 1 or 2 weeks
Pour la galerie, opinions not supported by facts are waste comments, no Jack Again... BAN...
Probably we need Eddie Glass, aka Russian blog, to confirm that the virus is not harmful and if like the flu. Why this website start filtering the comments more in fact content than word content. Would be more constructive.
Today is Wednesday...
lol... I thought I was in different reality
He is 1 day ahead... let's prepare for more red lol
Red!! The Russians and CCP are Red!!!!!
It's not lock-down fears, it's Democrats rioting in Philly and the fear that when they lose the election they will burn down the country. If Biden wins he will ***the economy. Sell.
ready for blood bath on Dalal street on tomorrow #india #nifty
on tomorrow indian nifty will also surge
Yes democrats are to blame for everything. They are taking your gun and wait socialism. Stop believing the fear the GOP spreads and turn off Fox news! Man people are blind.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.