Surging Corona Virus Cases Spooked US Markets Sentiment, Dow Slipped 710 points.

dow


Let’s explore the reason for Fall in US Markets.

  • Spike in Corona cases in U.S & the World at large dampened investors sentiments.
  • IMF further lowers its global economical forecast to 4.9% contraction on Wednesday from earlier 3% contraction in April.
  • Stocks on Wall Street tumbled with Dow sees its worst day since June 11.
  • Dow falls 710.16 points, S&P closed negatively with 80.96 points and Nasdaq also ends with an downtick of 222.20 points.
  • Asian markets are trading with negative biased this morning on the back of surging cases (7:26 a.m.)
  • SGX Nifty is in negative note this morning. (7:26 a.m.)


US Markets

Why US Markets on Wednesday Slipped on surging corona virus cases?

  • Today all states in U.S. are fighting with surged corona cases with worst hit States are California, Florida, South Carolina, Missouri, Nevada, Montana, Utah and Arizona. The cases have suddenly rising on easing lock down restrictions to support economical development.
  • Tuesday data revealed that California reported 7000 cases , Texas cases jumped to 5489 and similar situation in many other states in U.S.
  • On Sunday, there is a highest single day jump in cases that stood 183000 around the world. All this data point is making investors nervous on new restrictions that may come back on surging cases.
  • IMF also lowered further the global economical forecast to 4.9% contraction on Wednesday from earlier forecast of 3% in April. This has further dampened the investors sentiments.
  • All these factors together result in sharp fall in US stocks.

US Markets

  • Dow Jones Industrial Average decreased by 710 points or -2.72%, close at 25,445.94.
  • The S&P 500 slipped 80.96 points or -2.59%, ends at 3,050.33.
  • Nasdaq Composite Index tumbled by 222.20 points or -2.19%, close at 9,909.17.

 

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Asian Markets This Morning

Indices Current Value Prev. Close % Change
Nikkei 225 22,234.80 22534.32 -1.33%
Straits Times 2,593.33 2628.62 -1.34%
Kospi 2,124.99 2161.51 -1.69%
Jakarta Composite 4,945.24 4964.74 -0.39%
SGX Nifty 10,183.00 10313.00 -1.26%
       
Time of data collection: 7:26 A.M

Nifty Outlook

  • SGX Nifty is suggesting a negative start with a fall of 1.26% at present time (7.26 a.m.). Indian Markets will start at around 10200 level. Asian markets are trading negative this morning.
  • The structure of the market is positive and that is the reason to follow “Buy & Dip strategy”. Our strategy is to buy stocks today for few days and earn good profit from them. Do not short the market as it is to risky. Stay away from Nifty Future.

Read the article on “Stocks for long term portfolio

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