Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
According to the latest analysis, major U.S. equity benchmarks Like Dow Jones recorded a decline of 180 point. This decline has been linked to the 83,000 new coronavirus cases recorded in Sun Belt State over the weekend.
The recent report on the U.S. COVID-19 cases taking a new height has had a considerable effect on the futures of the U.S. equity benchmarks in a recent analysis. According to the latest analysis, major U.S. equity benchmarks like Dow Jones Industrial Average (INDEXDJX: .DJI) recorded a decline of 180 points with the likes of S&P 500 (INDEXSP: .INX) and Nasdaq Composite (INDEXNASDAQ: .IXIC) trading within the negative price zone.
This decline has been linked to the 83,000 new coronavirus cases recorded in Sun Belt State over the weekend. This makes sense as the previous 77,300 new COVID-19 cases recorded in July also affected the major stocks in the country.
When the performance of the major stocks is put into the bigger picture, it can be seen that the monthly performance has not been that bad. Looking at the monthly performance, Dow Jones had a 2% gain with Nasdaq and S&P 500 having 3% gains. This means the impact of the COVID-19 report had a limited effect on the general monthly performance, though the daily gains seem not encouraging.
According to the Chief Market Strategist at Miller Tabak, Matt Maley, it will take a serious new-news to push the points of the major stocks into a massive decline in the next week and a half based on how the market has responded to the COVID-19 news in the last two weeks. Interestingly, there is no guarantee that the U.S. will be able to control the pandemic anytime soon as the Vice President, Mike Pence’s Chief of staff has been reported to have refused to quarantine himself after testing positive for Coronavirus.
This poses a serious concern as more recorded cases can cause more decline or negative trade to some of these stocks. Regardless, there is good news in the air as the U.S. is in talks to release the next coronavirus stimulus package which may do good to the stock market contrary to the previous report of the relief package hitting a new stalemate.
Dow Jones Was Hit Last Month as Well
In the latter part of the second week of September 2020, Dow Jones recorded a decline of 509.72 points which was 1.8% with S&P 500 losing 1.2%. Nasdaq also recorded a decline of 0.3% in the same period. Dow Jones at a point lost over 900 points with S&P 500 recording its four straight losing streak for the first time since February. Dow Jones recovered with an industrial average of 161.39 points gained after two weeks.
Experts believe that the release of another COVID-19 relief package can act as a catalyst to cause a rapid growth in the stock market. It is also believed that Joe Biden winning the election and the Democrat dominating the house of representatives and taking charge of the Senate can cause the release of a larger stimulus package than currently expected which may have a very positive effect on the market.