Increases in COVID-19 new cases sparked uncertainty once more

Market Trends - 25/06/2020

Yesterday Stock futures appeared more moderate in late exchanging after a sharp market drop that was pushed by increasing concerns regarding a coronavirus resume.

Futures on the Dow Jones Industrial Average fell 132 points. S&P 500 futures and Nasdaq 100 futures also exchanged in negative areas while trading volumes were flat.

The recent increases in new coronavirus cases in many states are killing the investments and steady economic restoration. States like Florida and California published their most significant daily increases in new coronavirus cases, while Houston announced that they reached the top of bed capacity for patients. New York, too directed guests from several hotspot states to stay in quarantine for 14 days.

The negative headers pushed the market into a sharp fall yesterday while the Dow fell about 700 points. The S&P 500 and the Nasdaq dropped more than 2%. All three registered their weakest day since June 11. The Nasdaq further moved away from an eight-day winning streak. Chief investment officer at Independent Advisor Alliance, Chris Zaccarelli, stated in an email.

“The market has been optimistic that the economy is re-opening and that life would get somewhat back to normal, but the virus may have other ideas,”  “The market has again gotten caught up in the crossfire of increasing numbers of Covid-19 cases, trade protectionism and politics.”

Now, not only the U.S. is facing the threat of a new COVID-19 wave but also some other fundamental problems pushed Trump government to consider a probable new taxes plan on $3.1 billion exports from France, Germany, Spain and the U.K., based on a report from the U.S. Trade Representative published Tuesday evening. The new tariffs on olives, beer, gin, and trucks can be up to 100%.

Investors will watch closely the newest jobless claims data today while experts registered by Dow Jones anticipated a sum of 1.35 million first-time claims for unemployment insurance for the week of June 20.

The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.

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