Dow slips as Virus Surge threatens recovery from Investing.com

By Yasin Ebrahim

Investing.com – The Dow fell Thursday as a wave of red hit stocks linked to the economic recovery on concerns over the impact of further US restrictions amid a record wave of coronavirus cases.

While the United States saw a record 145,835 cases on Wednesday, parts of the country are re-imposing restrictions that weaken the economy to curb the virus. The threat of renewed freeze measures triggered investor nervousness about the impact on the pace of the recovery.

“Although the lockdowns that were released during the spring do not appear to be repeated, we expect many local governments to rapidly implement policies that attempt to limit the spread at the expense of promoting economic activity that could lead to a new round of layoffs,” Jefferies (NYSE 🙂 said in a note following the jobless claims report released Thursday.

In the week ending November 7, 709,000 people filed for unemployment insurance, down 48,000 from the previous week’s revised 757,000 upwards, and better than the 730,000 expected claims.

Major U.S. cities, including Boston, New York, and Chicago, recently announced hospitality restrictions and curfews to stem the leap in cases.

Adding to concerns about further lockdown measures, Federal Reserve Chairman Jerome Powell warned that the economy will be tested in the coming months by the resurgence of the virus.

Energy, meanwhile, led the fall in value stocks as an unexpected increase in weekly stocks exacerbated sales.

Crude oil inventories increased by 4.3 million barrels, according to the Energy Information Administration. The expectation was a draw of 913,000 barrels.

Materials and finances have also come under pressure, with the latter taking a hit from declining banking shares following the surge in positive vaccine news earlier this week.

JPMorgan Chase & Co (NYSE :), Wells Fargo & Company (NYSE :), Citigroup (NYSE 🙂 fell 1%.

Technology, which had offset losses in value shares a day earlier, was in trouble. Apple (NASDAQ :), Amazon.com (NASDAQ :), Facebook (NASDAQ 🙂 Alphabet (NASDAQ 🙂 and Microsoft (NASDAQ 🙂 ended up in the red.

In other news, Modern (NASDAQ 🙂 has fueled hopes that preliminary data for its Covid-19 vaccine candidate could be released soon after exceeding the number of coronavirus cases needed in its late-stage vaccine study to present preliminary data to a committee. independent audit. Its shares have increased by more than 6%.