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

Dow Snaps 3-Day Win Streak as Rising Infections Return to Focus

Published 06/17/2020, 03:37 PM
Updated 06/17/2020, 04:01 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com – The Dow snapped a three-day winning streak Wednesday as investor optimism over the path of an economic recovery was kept in check by a rise in Covid-19 infections across parts of the U.S.

The Dow Jones Industrial Average fell 0.65%, or 170 points, the S&P 500 slipped 0.36%, while the Nasdaq Composite was up 0.15%.

A rise in infections in some states, including Arizona, Florida, and Texas, stoked fears that lawmakers may move to roll back the relaxation of some restrictions, leading some to rein in some of the bullish bets on stocks tied to progress of the economic reopening.

United Airlines (NASDAQ:UAL), Royal Caribbean Cruises (NYSE:RCL) and Marriott International (NASDAQ:MAR) were among the worst hit.

Energy, which has ridden the wave of reopening optimism in recent weeks, led the broader market lower as concerns about crude demand were exacerbated by a surprise build in weekly crude supplies.

Weekly U.S. crude supplies climbed 1.2 million barrels last week, confounding expectations for a draw of 152,000 barrels.

In tech, meanwhile, social media companies came under fire on reports that the Department of Justice was looking into reforms that aim to weaken a legal protection that shields them from liability over content posted on their platforms.

Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR) turned negative after paring gains, but Snap (NYSE:SNAP) was up more than 3%.

On the monetary policy front, Federal Reserve Chairman Jerome Powell, in testimony before the House Financial Services Committee, said that the Fed will move away from buying exchange traded funds (ETFs) invested in bonds and instead purchase mostly individual corporate bonds.

"Over time we’ll gradually move away from ETFs and move to buying bonds,' Powell said, according to CNBC. "It’s a better tool for supporting liquidity and market functioning."

Powell also stressed that Fed's corporate bond-buying will be at the "bottom end" of the possible range because markets are functioning well.

Latest comments

These articles are absurd. How do they know that infections are the reason its down. Could it be that its so overcooked by now that everyone is figuring out that the Fed can't keep this scam going on forever?
And why did they figure this out now and not two weeks ago for instance? 😉You are being biased towards your own opinion, exactly like the article writer.
This renowned says this is a market bubble and it will crash soon. That's actually why Markets dropped as he was saying this. Do you he is correct?https://www.marketwatch.com/story/stock-market-legend-who-called-3-stock-market-bubbles-says-this-one-is-the-real-mccoy-this-is-crazy-stuff-2020-06-17
The only bubble that i saw is teck Market but if we try to look all of them that V shape is only fo tech stock but some are still in the buttom price...
a bunch of garbage
One month fed buying and changing targets. Also I really like how the Republicans now associate any increase in the virus with left. Amazing their ignorance and manipulation of truth. Wait for the 2nd wave, is here. Later blame the left.
It didn't go down that much. Maybe it's just a healthy correction or profit taking
Yawn nothing new here as usual. Recycled articles. You should pay me to do such an easy job
When Powell says FED is switching from buying ETFs to bonds, does that hurt stocks, especially SPY, QQQ, IWM..etc? Anybody care to explain?
Forget this noise. Buy and hold solid companies. Think long term. Right now market is unpredictable. This is not the norm.
Means he is closing out his personal positions @ blackrock. aka the party is over.
Fake news. The number of people testing positive for covid-19 is increasing not the number of infections. Typical left wing biased Reuters.
The exact same talking point that Kissy Kissy Mike handed out during his governors’ call the other day. Yet one more lie from the Dr Donny administration. Just wait ‘til John Bolton gets through with him!
Relizing some communities may be different but many counties share similar statistics: 77,000 people normally averaging 700 deaths per year and so far 2 Covid related deaths less than 0.003%...99.997% die of other causes. Even if I were one of the 2 I would not want 76,998 people to stop living, missing senior school events, lose businesses, jobs, losing normal hopital visits, funeral services, creating more emotional, physical, financial, stress induced issues. The ends do not justify the means destruction of peoples lives. WW2 the greatest generation never would have allowed this to happen. Protect the weak as best we can and go on living! #no turning back
 , John Bolton's ego is reflected in the size of his mustache. He probably thinks he should have been president. He's made a career out of ratting-out people.
covid fear wont survive much longer.
says the one wearing the mask!
It can't go up every day.
Just like I called it yesterday at this time. And of course all the Dr Donnies out there haven’t uttered a peep regarding how right I was about today’s lackluster market. Oh, and did I mention how the GOP/Reagan era poster child, John Bolton, feels about Dr Donny? Self-serving pompous liar who went kissy kissy with all the world’s dictators is a kind way to interpret Ambassador Bolton’s words. You know....the same way Kissy Kissy Mike does with Dr Donny. Slurp!
shmuck
Hey! There’s no mooning on this site!
Thom, Obama was the dictator ars kisser. Get your facts straight.
No one fears the corona anymore, the market was down today because it was down. That’s it...
It is red because the goverment and Feds are pulling back not because of Corona fear.
You know what grinds my gears? When the Dow goes up, we’re “optimistic” amd when it goes down, we’re pessimistic”. Its always one or the other
These headlines gotta go
Agreed.
Guys, your guts the best bet. MMs manipulate all day. Buy n hold. This time next year c19 wont mean squat. However other market rattlers will. Be nimble, question authority, and make your own decisions
how will it effect Indian markets?
Shiva will go on strike.
U mean rising viral infections are only temporary right and not like a wave 2 as expected? Fed has been helping the market.. never go against fed !
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.