Let’s explore the reason for fall of Stocks on Wall Street.
- Corona virus cases in United States surged by 30000 on Friday, highest number of cases registered on single day since May 1.
- All states in U.S. experienced the rising corona virus cases and dampened the investors sentiments.
- Worst hit States are California, Florida, South Carolina, Missouri, Nevada, Montana, Utah and Arizona.
- Already U.S. economy is hit by high unemployment and surging cases will further deteriorate the situation.
- Stocks in Wall street ends in mix territory in which Dow lost 208.64 points, S&P closed with -17.60 points and Nasdaq also ends with a gain of 3.07 points.
- Asian markets are trading with mix biased this morning.
- SGX Nifty is in negative note this morning.
Why Wall Street Stocks falls on Friday?
- Stocks tumbled on the back of surging coronavirus cases in United States. Friday was one of the worst day in terms of highest number of cases registered on single day at 30000 since May 1. Most of the States in U.S. are again fighting with surging cases.
- States like California, Florida, South Carolina, Missouri, Nevada, Montana, Utah and Arizona are worst hit. All these states have relaxed the lockdown restrictions due to pandemic.
- All ready U.S. economy is under the grip of high unemployment and with rising cases the situation will get worse.
- China decision to close parts of Beijing highlights rising corona virus cases. This shows all is not well in China and more negative news is expected.
- Dow Jones Industrial Average decreased by 208.64 points, or -0.80%, close at 25,871.46.
- The S&P 500 lost 17.60 points, or 0.56%, ends at 3,097.74.
- Nasdaq Composite Index gained by 3.07 points, or 0.031%, close at 9,946.12.
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- SGX Nifty is suggesting a negative start with a fall of 0.37% at present time (7.18 a.m.). Indian Markets will start at around 10200 level. Asian markets are trading mix this morning.
- Your strategy should be buy on dip on Nifty future with 10330 as a resistance point. Go long if you get a dip around 10150 and look for target 10250, stop loss at 10020 level.
Read the article on “Stocks for long term portfolio“