By
Steve Muchoki
April 16th, 2024
The Dow Jones Industrial Average is expected to dip 700 points further on Wednesday, after falling over 600 points at the end of March. This comes as the White House predicts 100,000 to 240,000 coronavirus-related deaths in the United States
The Dow Jones Industrial Average is set to receive a huge blow from the ongoing coronavirus crisis as we begin a new month. The stock market index, which measures the stock performance of 30 large companies listed on stock exchanges in the U.S., dropped over 600 points on Tuesday. Furthermore, the Dow is now set to fall 700 more points, which will wipe out the previous week’s gains.
Investors were able to cut short their losses after the U.S. government announced a $2 trillion stimulus package to cushion the market from the coronavirus crisis. However, the rally was short-lived as the virus has shown its capability to infect more than predicted.
After experiencing a strong resistant level at 22,450, the Dow quickly formed a double top in preparation for a further fall. The next wave of fall might see the Dow futures fall to 15,583, support that acted on the 2016-2018 bull rally. If the index breaks below that level, things will be now looking at a possible recession as it will fall to the 2008 lows at around 7,300.
Tighten Your Belts for Tougher Times Ahead
As coronavirus takes center stage in the U.S., the stock market continues feeling the heat directly. Major stock indexes like the S&P 500 and the Nasdaq 100, are also pointing downwards on a new phase of free fall. If the prices at the time of writing obey some technical analysis, the free fall which is a second wave might crash the stock market to the worst level in a historical measure.
Even with the stimulus package set to cushion the market, it will be just a tip of the iceberg, as the coronavirus infection rate continues rising by the day. For these and many more reasons, investors should be ready for more volatility ahead. Lockdowns are going to be the order until the virus is tamed, which will make life as we know it much more difficult.
Dow and Stock Market Fall, White House Predicts More Deaths from Coronavirus
In a bid to prepare the American people for a tough two weeks ahead, President Donald Trump made a press conference to address the issue at hand. He said:
“This could be a hell of a bad two weeks. This is going to be a very bad two, and maybe three weeks. This is going to be three weeks like we’ve never seen before.”
Besides, White House officials are projecting the number of coronavirus-related deaths in the next few weeks to hit between 100,000 and 240,000 in the U.S. alone. As of March 31, according to data from the CDC, 163,539 people had tested positive with the virus. The number of deaths stood at 2,860.
With all these confusions, we can only hope for the best and quick recovery to all those infected by the virus.