Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.
The COVID-19 pandemic is the main topic for discussion today. The markets have far not the best period. S&P 500 and Dow are losing their positions.
The Dow and S&P 500 are experiencing a very rough start to the new trading quarter. Sources say that the financial markets are facing their worst start to a new quarter in history. The COVID-19 situation has turned global financial markets upside down as the numbers of the dead and infected continued to rise. The total number of people infected globally is over 930,000.
Dow and S&P 500 Experience Historic Slides
The Dow Jones Industrial Average (DJIA) had a decline of 4.44% to 20,944 points at the start of the quarter. This decline is the worst in the history of the index since it started operations. The S&P 500 declined by 4.41% to2,470 points.
This then means that the markets will continue to slide as the general business sentiment goes into a steady decline. The United States is already experiencing its worst period of the pandemic as the death toll rises by more than 5,000 people.
Sources say that U.S. President Donald Trump has already given indications about the next couple of weeks. The Dow drop by about 974 points as a response to the Presidents’ comments. Markets are feeling the pinch for many reasons.
Governments around the world have still not given any indication as to when the movement restrictions will end. This comes we all don’t know much about the COVID-19 virus. Several attempts at treatment are seen as experimental at best. There is no standard defined procedure yet for the treatment of COVID-19. The data gotten is from different approaches by different medical experts. These all have varying degrees of success.
Then there is the vaccine issue. A vaccine that is safe for the public is more than a year away.
COVID-19 Hurts Global Business
On the business end, global supply chains have been destroyed as countries are limiting the export of essential items. This is an attempt to create further stockpiles. Such protectionist measures are hurting the global economy.
In the midst of all of this, most governments have shut down their borders. They have also implemented movement restrictions to halt the spread of the virus.
The markets are a reflection of emotions everywhere. The United States is now the epicenter of the coronavirus. The highest numbers of daily dead and infected are occurring there.
It gets even worse. The White House is projecting that there could be as many as 100,000 to 240,000 deaths in the next few weeks. This peak period for the virus will be bad news for everyone else.
The U.S. economy is the world’s largest economy at the moment. Further job losses are expected to occur now. Many analysts are expecting that the markets will fall even further as the U.S. becomes ground zero.
In the end, the saving grace for the U.S. economy will be some form of innovation which they are known for. Then again, there could be a silver lining in the eye of the COVID-19 storm. Who knows?