It seemed the worst was over- the economy was rebounding, stock markets were soaring, and businesses were reopening- slam the brakes; American Markets fell well over 2 percent across the board. Stock Market futures point down after reports of an unexpected Coronavirus resurgence. So will the market keep rising? Is this a correction, or will the dip continue- it seems intimidating- can just news on a Coronavirus resurgence drive the market down. Well... yes.
A Coronavirus Resurgence is Pushing Market Down
After the grim day in the markets that was 6/24, Wall Street experienced its worst session in over two weeks. After dramatic spikes in cases in new Coronavirus "hotspot" states, like Florida, California and Texas.
The Dow dropped 710 point, or around 2.7 percent. The S&P finished slightly higher, but still low down at almost 81 point, equivalent to 2.6%. The NASDAQ finished red around 222 points down, or 2.2 percent.
As of Tuesday, 6/23, Florida stated that its confirmed cases jumped by 5,508 on Tuesday, a grim record, and now total 109,014. California also reported more than 7,000 cases in one day, leading the Dow to fall more than 800 points at its low, and leading it to close around 710 points. The bottom line is that the market is falling due to a fear of a second wave of Coronavirus cases.
(Source; CNBC and Factset)
Will a second wave drive certain sectors up?
It's likely that this second wave can push certain sectors like technology, E-commerce, and Fintech up, as people will be less likely to want to go out- during the first wave, E-commerce grew almost 50%, and the stocks were soaring- technology companies drove the NASDAQ to a record high, and the economy was booming- today many gains were lost, or corrected. In the graph above, notice the decline to ultimately the lowest point, and a steady, yet volatile rise- as Coronavirus begins to worry the world once more, a drop could be likely.*
Wall Street looks to take another disappointing dip, as futures for the Dow, S&P, and NASDAQ point downwards around 300, 34, and 81 points respectively. Take a look at the futures chart, thanks to CNBC's real-time charts:
Summary: Today was a disappointing day for Wall Street- the worst session in two weeks. The fall was to due to a resurgence in Coronavirus cases, and worries, with states like Florida, Califronia, and Texas reporting record numbers of cases. A second wave could drive certain sectors, like technology (E-commerce, Fintech) up, as was seen in the first wave.*
*BizRoca is not giving financial recommendations. These are our opinions, and should not be taken seriously. For serious financial recommendations, consult a financial expert.
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