New York Stock Market Collapses Again Amid COVID-19 Spread (Update)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market showed a sharp decline on the 26th (local time), reflecting disappointment over the spread of the novel coronavirus infection (COVID-19) and difficulties in additional economic stimulus negotiations.

On that day, the Dow Jones Industrial Average fell 650.19 points (2.29%) to 27,685.38, the S&P 500 index dropped 64.42 points (1.86%) to 3,400.97, and the Nasdaq index closed down 189.35 points (1.64%) at 11,358.94.

The Dow Jones index plunged as much as 965.41 points (3.4%) during the session but reduced its losses before the close. The decline rate of the Dow was the largest since the 3rd of last month. With the drop on this day, the Dow Jones gave back all the gains made this month.

The number of COVID-19 patients exceeded 80,000 per day, and remarks by White House Chief of Staff Mark Meadows that the control of COVID-19 had been abandoned pressured investor sentiment.

Stocks related to cruise lines and airlines such as Royal Caribbean (-9.7%), Delta Air Lines (-6.1%), and United Airlines (-7%) showed notable declines.

CNBC interpreted that the worsening investor sentiment was due to the daily new COVID-19 infections in the U.S. exceeding 80,000.

Negative views on additional economic stimulus bill negotiations expressed by Speaker Nancy Pelosi and Chief of Staff Meadows also worsened investor sentiment.

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

Dunkin' Brands, the parent company of Dunkin' Donuts, which has been subject to sale rumors, rose 16%.

The dollar value, which had been weak recently, rose. The dollar index, which shows the dollar value against major currencies, was up 0.33% at 93.058.

West Texas Intermediate (WTI) crude oil for December delivery closed down 3.2% ($1.29) at $38.56 per barrel. This is the lowest price in the past three weeks. It is also evaluated that concerns over demand slowdown due to the spread of COVID-19 played a role. December gold closed up 0.03% ($0.50) at $1,905.70 per ounce.