Dow Flips over 500 points as COVID-19 fears rise once again

At the start of the week for the Dow and the broader market, stocks fell on Monday as investors worry about when Washington will settle on another stimulus bill. Because of the coronavirus mounting infections across the world with the colder weathers of 2020, some regions are also weighing on the market. Investors’ concerns are growing increasingly about another phase of lockdowns, whereas the economic recovery from the outbreak remains fragile.

The Dow completed the day 510 points down, or 1.8%, marketing its lousy day around the last fourteen days. The broader S&P 500 finished down 1.2%. Both the S&P and Dow are flirting with falling into correction territory, which called as ten percent drop from the peak. Furthermore, the Nasdaq Composite, an individual index of the three that currently is in correction territory, finished only slightly lower, down around 0.1%.

So, all major stock benchmarks showed three-consecutive weeks of losses. This week might be number four. Likewise, European markets traded lower on Monday. Whereas, stocks are getting hit the safe-haven United States dollar, accessed by the ICE U.S. Dollar Index, up about 0.7% at the New York closing bell. United States Treasury bonds are also in high demand on Monday as the ten-year bond yield down to about 0.67%. Yields and bond prices move opposite to one another.

Dow Flips over 500 points as COVID-19 fears rise
Dow Flips over 500 points Source: Web

Death of Supreme Court Associate Justice Ruth Bader Ginsburg

Sentiment in the United States is also worse following the death of Ruth Bader Ginsburg, the Supreme Court Associate Justice, on Friday evening, wrote Thierry Wizman, Macquarie worldwide interest rates, and currencies strategist, in a note to clients. Washington is in a conflict about whether a judge will fill Ginsburg’s seat before or after the November elections.

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