COVID-19 Resurgence... US Stock Market Collapses Again

As Infection Rate Accelerates, Investment Sentiment Plummets
Dow Jones Falls 2.29%... Monthly Gains Wiped Out

[Asia Economy New York=Correspondent Baek Jong-min] Major indices of the New York stock market, which had been showing unstable trends due to stalled additional economic stimulus negotiations, fell sharply amid the spread of the novel coronavirus infection (COVID-19).

On the 26th (local time), the Dow Jones Industrial Average dropped 2.29% (650.19 points) to close at 27,685.38, the S&P 500 fell 1.86% (64.42 points) to 3,400.97, and the Nasdaq index also declined 1.64% (189.35 points) to finish at 11,358.94.

[Image source=EPA Yonhap News]

The Dow's decline on this day was the largest single-day drop since the 3rd of last month. This drop erased all gains made earlier this month. During the session, the Dow plunged as much as 3.4% (965.41 points).

The sharp market decline was due to the faster-than-expected spread of COVID-19, which negatively affected investor sentiment. In the United States, daily confirmed cases exceeded 80,000, with the average daily cases last week reaching a record high of 68,767. Europe faced a similar situation; in France alone, 52,010 people tested positive for COVID-19 on the 25th. The Wall Street Journal (WSJ), citing experts, reported, "While a second wave was expected as the weather got colder, the current situation has arrived earlier than many anticipated."

White House Chief of Staff Mark Meadows' statement the previous day that COVID-19 would not be controlled also pressured investor sentiment. Negotiations over the U.S. economic stimulus package began to deteriorate starting last weekend. Although there had been some progress on certain issues by late last week, over the weekend, the Democrats and the White House harshly criticized each other for a lack of effort.