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Dow Slumps as Fears Over Another Shutdown Gather Pace Amid Rising Infections

Published 06/24/2020, 12:52 PM
Updated 06/24/2020, 02:21 PM
© Reuters.

By Yasin Ebrahim

Investing.com - Wall Street slumped on Wednesday, paced by a decline in energy, as investors fretted over the prospect of another lockdown after some parts of the U.S. imposed restrictions to combat a resurgence in coronavirus infections.  

The Dow Jones Industrial Average fell 2.67%, or 699 points, the S&P 500 slipped 2.63%, while the Nasdaq Composite fell 2.30%.

With more than half of all US states reporting a rise in new coronavirus cases, with some breaking daily records, some parts of the U.S. are taking measures to contain the spread of the virus that threatens to undo some of the recent progress on reopening the economy.

New York, New Jersey, and Connecticut will require visitors from states with high rates of infections to self-isolate for 14 days, N.Y. Governor Andrew Cuomo said on Wednesday.

Other states have also suggested that restrictions could be reimposed to contain the outbreak.  

California Governor Gavin Newsom said he was prepared to reimpose stringent coronavirus restrictions to contain the surge in infections in the state, which reported more than 5,000 new cases on Tuesday, the highest number reported in a single day since the pandemic began.

Florida, meanwhile, confirmed that cases in the state jumped by 5,508 on Tuesday, a record, and now total 109,014.

Disney (NYSE:DIS) fell 5% after its theme park workers urged the company to delay the reopening following a record uptick in coronavirus cases in Florida.

Energy, led the decline in the broader market, paced by a slump in oil prices on fears the uptick in infections would force some states to reimpose some restrictions, hurting the usual a pick-up in demand seen during the summer months. The fall in oil prices was also exacerbated by a larger than unexpected build in U.S. weekly crude inventories, adding to concerns about the glut in supplies.

The reopening trade - bullish bets on stocks tied to the progress of the economic reopening – was shunned, with travel and tourism stocks down sharply.

American Airlines (NASDAQ:AAL) fell 5.8%, Marriott International (NASDAQ:MAR) slid 5.7%, Wynn Resorts (NASDAQ:WYNN) was down 9.3%, and Carnival (NYSE:CCL) slumped 11%,

Tech, which has weathered much of the virus-led wobbles in the market since the March lows, fell out favor, with FAANG stocks in the red.

Facebook (NASDAQ:FB) fell 3%, Apple (NASDAQ:AAPL) slipped 1.5%, Amazon.com (NASDAQ:AMZN) was down 1% while Netflix (NASDAQ:NFLX) slid 1.6% and Google-parent Alphabet (NASDAQ:GOOGL) fell 2%.

Dell Technologies (NYSE:DELL), meanwhile, sidestepped the selloff, rising 7.6%, following reports that it was exploring options to sell its $50 billion stake in VMware (NYSE:VMW).

Latest comments

Next crash coming sooner than expected.. lol
That's what they want you to think ... then it surges lol
with all that money that the fed has put and still putting everyday more and more...I don't know if we will see a crash I am not that sure
https://media.tenor.com/images/a1c3621570235d79a665ae8993c91027/tenor.gif
If the governmebt shuts down in simialr ways there will be rioting luke this coubtrh has never seen beforeThis is nonsensical and Ryan Morelli is right
There's a simple solution that doesn't require another shutdown. Simply avoid large crowds, adhere to physical distancing, and wear a mask when you can't keep your distance. Other than those little things, life can go on as usual until a vaccine is developed or infections go way down.
Could you say this in English next time. Or perhaps in Italian so Morelli can understand it.
Markets needs to go up and down dosent matter how.
How many cases of influenza do we have? Maybe we should shut everything down. I'm serious, the lethality of this thing is comparable to influenza. Yes people die of the flu. No we don't shut down the whole world and hide in our basements. Don't be like Joe.
Sorry. You are wrong! The common flu takes between 250,000-500,000 worldwide lives during a 6-month season...Oct thru Mar. 500,000 lives only in a very severe case, perhaps when the vaccine doesn’t at all match up with that year’s virus strain. Meanwhile, Covid-19 is only about 4 months along and has already taken 475,000 worldwide lives, despite all the precautions that have been put in place since March. And this level is currently growing by about 5,000 a day with no end in sight.
Back when I was a kid, it was commonplace to descriminate against Italians in this country. Your death threat allows me to better understand why this was so.
Report Ryan, Straight up wishing death upon people. BAN creatures like this.
guys i highly doubt these articles are manipulating the stocks, or even have a clue of why the market moves. i think the market is moving down because of rising tensions between india/china and japan/china. also if we ever go into war. soldiers will get corona and cases will rise.
I disagree. Those tensions have been there. No ones going to war. This is just a correction with the past week of gains.
 recent tensions news are, 20 indian troops deaths at border, 40 china death at border. japan moving missles near china. us sending 3 aircraft carriers to pacific ocean.
Second wave is absolutely no surprise, just a matter of when and how large. And Trump's comments about doing less testing is just brazen suppression of the numbers. This from a regime accusing China of lying. The fact is the US bungled the entire response to the pandemic and now it's just printing money and letting people die because the disease has gotten out of control.
Raksaksa is completely correct and does have the facts straight. And by the way, socialism doesn't always lead to communism. Just look at Scandinavian countries as proof. It's dictatorships that cost people their lives for comments against the government, and Trump and his corrupt cronies are moving closer to dictatorship than any administration in recent history.
Who are these bedwetting investors scared of another shutdown? Govt leaders have already stated several times the first shutdown wasnt warranted and there wont be another one.
Dr Donny’s lack of adherence to his own Covid-19 task force guidlines (in particular, his reluctance to wear a mask) has resulted in his “base” following his lack of leadership.......monkey see, monkey do, if you will. For the most part the protesters wore masks, which is not as critical when outdoors, but most did so anyway. So if there is a true culprit here, it’s Dr Donny himself. Failed leadership both with the economy and with the virus. The former is the worst seen since the Great Depression and the latter is the worst seen since the pandemic of 1918/1919. That’s two stikes against him. And when you consider he was impeached, that’s three strikes. And three strikes, you’re out. Take a hike, West Point Rampsplainer. We don’t want you around here any more.
“Monkey see, monkey do”. Hahaha! You got that right!!!
Understood, but you’ve missed my point. ALL the directives are voluntary. But that doesn’t excuse the “President” from setting the proper example, especially at time when cases and hospitalizations are increasing in many states at the fastest clip seen in many weeks. Is it really asking too much for Dr Donny to wear a medical mask to set the tone and save many thousands of lives in the process? C’mon now, think about it.....
"Westpoint Rampsplainer" haha, that's so true.
China commie regime need to pay for all the loss of the world. Do not just pay to the Beijing Biden and rioters.
Trump won’t take any action. It owes China too much money
David Wang, why would China ever pay the rioters or even Biden? That was kind of a senseless comment.
The US federal government plans to stop funding and support for 13 coronavirus testing sites in five states
This, while new infections are increasing in half the states. Sounds like Trump's attempt to try and reduce the amount of testing to try and make things appear better than they really are (just like he supposedly joked about at the Tulsa rally). It seems rather irresponsible, as identifying new infections as much as possible is the best way to reduce further spread and avoid future shutdowns.
Dems love people fear for election purpose. Dems love the virus and rioters.
Don't be ridiculous. Yes, Dems want Trump to lose this election, but that certainly does not mean they "love the virus and rioters." That sounds like the kind of nonsense that Trump loves to make up.
We will not shut down again. Let's live with the virus which is already weakened.
What? I agree we have to live with the virus until a vaccine is developed, but the virus has not weakened. What makes you say that?
Fearmongering and manipulation by herd instinct. Lockdowns?...the entire planet will be set on fire by riots...
"...the entire planet will be set on fire by riots" It looks like you're the one who is fear mongering. lol
No one cared when the rioters were out, all of a sudden the virus is a problem again. This is a fear tactic designed to steel your shares and money. If you dont sell you dont loose, these guys have no where to go when interest is so low, the doller falling the will invest in equities or hold cash and watch it loose its value. The fed will also be back in full force so id easily expect a run to dow 28000 as soon as it happens. When you see this much negative news you we hit the bottom just like last time.
The more it drops, the more I buy. This is going to be an amazing return going L-O-N-G.
Do they literally just copy and paste their $hitty articles from the last week and add in a few technical pieces at the end?
Same stock photos rotated throughout the day. I think they own around 10.
tight budget they have
They use stuff from Christmas. Lights up in trading pit.
Such hindsight publishing. I like the realtime price quotes, but 85% of articles are terribly written and dated. They don’t seem to understand that it is OK not to publish something several times a day on the same topic. Just like I tell my children if you don’t know the answer it is perfectly OK to say I don’t know.
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