US Stock Market Turns to Sharp Decline... Dow and Nasdaq Fall 3% Intraday

Sharp Rise in New COVID-19 Infections and Stalled Stimulus Bill Impact
Dollar Value Increases

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] On the 26th (local time), the New York stock market turned into a plunge.

As of 1:45 PM that day, the Dow Jones Industrial Average was trading at 27,343.28, down 3.18% from the previous day, the S&P 500 index was down 2.65% at 3,373.32 points, and the Nasdaq index was down 2.63% at 11,244.62.

The decline in the Dow was particularly notable. The Dow fell as much as 900 points during the session. After opening at 28,000 points, the decline continued and it collapsed helplessly.

CNBC interpreted that the investment sentiment worsened as the number of new COVID-19 infections in the U.S. exceeded 80,000 per day. With the decline on this day, the Dow Jones gave up all the gains made this month.

The day before, White House Chief of Staff Mark Meadows mentioned that COVID-19 could not be controlled, which is also interpreted as having a negative impact on investor sentiment.

Frank Levinsky, Chief Macro Investment Strategist at Agency Asset Management, predicted, "Until the virus is somewhat eradicated, the market will inevitably be clouded." He also introduced that his company has been reducing investments in risk assets.

The expectation for the passage of additional economic stimulus bills, which had supported the market until last week, significantly weakened over the weekend, which is also interpreted as a factor leading to the stock price decline on this day.

By stock, Microsoft is showing a large drop of over 3%. Facebook is also down about 3%. Apple and Tesla are down about 1%.

Among the Dow components, American Express and Boeing are down 4%.

Dunkin' Brands, the parent company of Dunkin' Donuts, which has been rumored to be sold, rose 15%.

The dollar value, which had been weak recently, rose. The dollar index, which shows the value of the dollar against major currencies, is forming at 93.045, up 0.3%.

Oil prices are trading at the $38 level, down 3.48%.