U.S. stocks continue to be negatively affected by New coronavirus cases, which have skyrocketed in the country
US stocks fell to a two-week low as the reopening process in the US economy began to stall due to sharp increases in the number of coronavirus cases. Facebook shares March their strongest fall since March due to a problem with advertising, bracing for a decline in the market.
The benchmark Standard&Poor’s 500 (S & P 500 ) Index fell 2.4 percent as the states of Texas and Florida banned drinking in bars and the state of Arizona announced a rapid increase in the number of coronavirus cases. Data released in the US showed consumer spending rose at a record pace in May as a result of Americans spending their aid money despite declining incomes. Shares of the big banks have plunged in value after the Fed limited those banks ‘ dividends until the end of September and halted share buybacks.
“People should be concerned about what will happen in The Sun Belt (south of the US) and the dramatic increase in the number of cases,” said Yousef Abbasi, global market strategist at stonex, adding that there will probably be some anxiety.
The S&P 500 Index fell 74.74 points, or 2.42 per cent, to 3,009.02 points, while the Dow Jones Index fell 730.12 points, or 2.84 per cent, to 25,015.48 points and the Nasdaq index slipped 259.78 points, or 2.59 per cent, to 9,757.22 points.