Huge fall on Wall Street on coronavirus impact, with worst Dow Jones and S&P 500 data since June

The Nasdaq Composite Index lost 426.48 points, which represents a 3.7% contraction from the previous session.

US equity markets closed the session on Wednesday with a steep drop amid a climate of concern over the recent rise in coronavirus infections and its potential impact on the global economy, local media reported.

The industrial average Dow Jones he experienced his fourth consecutive negative session, contracting by 943.24 points (3.4%), reaching 26,519.95 points; while the Standard & Poor’s 500 (S&P 500) index fell by 119.65 points to 3,271.03, a drop of 3.5%. Both had their worst day since June 11th.

For its part, in the last 24 hours the Nasdaq Composite index fell by 3.7% (426.48 points), reaching 11,004.87 points at the end of the session.

New restrictions

Hours before Wall Street closed lower, European market benchmarks also contracted. The German Dax index fell 4.2%, reaching its lowest level since the end of May. Meanwhile, France’s CAC 40 lost 3.4%, while London’s FTSE 100 closed after a 2.6% drop.

During the last week, coronavirus infections in the United States they increased by record the daily average of 71,832, based on data from Johns Hopkins University. Hospitalizations related to the new disease have increased by 5% or more in three dozen states.

The current resurgence of covid-19 infection has led some countries to reintroduce some social distancing measures, such as France which has imposed a national blockade until 1 December.

“Indicator of fear”

The Chicago PUT Options Market Volatility Index (VIX), known on Wall Street as the market’s “fear indicator”, jumped above 40 to its highest level since February 15. June.

“The investor hopes that the covid-19 pandemic does not impose stricter mitigation measures and / or possible massive blocks that would push global economies to a “low power mode” they seem to be questioned, “explained Yousel Abbasi, StoneX’s global market strategist.

Since this Monday, the Dow Jones has fallen 6.4%, while the S&P 500 has fallen 5.6%, so both indices are on track to mark their largest weekly decline since March of this year. . For its part, the Nasdaq contracted 4.7% this week.

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