A trader on the trading floor.
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(Photo: AP)
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New York / Düsseldorf Fear of a second wave of coronavirus infections hit the US stock markets on Tuesday. According to US health expert Anthony Fauci, it will take a while for a coronavirus vaccine to be developed and on the market. Therefore, the state should focus on best practices and restrictions to curb the spread of the virus, President Donald Trump’s adviser said at the beginning of his hearing before the Senate Health Committee.
Fauci also warned that the restrictions on public life would be eased too early. This could endanger not only people, but also the recovery of the economy.
The US standard value index Dow Jones closed 1.9 percent lower at 23,764 points. The technology-heavy Nasdaq dropped 2.1 percent to 9002 points. The broad S&P 500 lost 2.1 percent to 2870 points.
Growing tensions between the USA and China
Even from the perspective of a leading Federal Reserve central bank, the reopening of the US economy should not be too quick after the closings and restrictions on contacts. Because this could lead to a second wave of infections, warned the head of the US Federal Reserve branch from Philadelphia, Patrick Harker. “It would not only be a health disaster, it would also reverse the recovery,” he said.
Stock marketers were also concerned about rising infection rates in countries like South Korea, said analyst Lee Hardman of Bank Mitsubishi UFJ. “Although the number of cases is relatively small, they throw a spotlight on the bumpy road ahead of the global economy.”
The trade relationship between the United States and China plunged investors into an emotional exchange. The renewed tensions weighed on sentiment as the government in China appears to be considering renegotiating the trade agreement with the United States, said Hareesh V, senior analyst at Geojit brokerage firm. US President Donald Trump had recently made serious allegations to China about the corona virus crisis and also threatened the consequences of the trade dispute.
At the same time, the Chinese government promised exemptions from punitive tariffs on other US products. In parallel, the State Department stressed that both the United States and China benefited from the trade agreement.
Look at the individual values
The shares of Tesla still relatively stable at minus 0.2 percent. Elon Musk, chief of the electric car manufacturer, starts up production at the main Fremont plant in California, thereby opposing a ban on the authorities in the Corona crisis. Overall, California has allowed companies to be cautiously opened. In the district in which the Tesla plant is located, however, restrictions on going out still apply.
Boeing lost orders for a further 108 planes of the 737 Max breakdown aircraft in April. Among other things, General Electric leasing company Gecas cut its Max orders, according to Boeing data. Orders for 150 machines of the 737 Max were canceled in March. Boeing papers lost 2.9 percent.
The titles of Blackrock were among the losers with a minus of almost eight percent. The largest shareholder, Bank PNC, wants to get out of the world’s largest asset manager. PNC appears to want to silver-plate its stake to use the money for a major acquisition, said asset manager Edward Jones analyst Kyle Sanders. The bank had used stock market turmoil for such transactions in the past. PNC shares lost around two percent.
Takeover speculations brought GrubHub in contrast, the largest price jump in the company’s history. The U.S. food supplier’s stock temporarily rose nearly 38 percent to $ 64.40. In the end there was an increase of 29 percent. According to an insider, the travel agent Uber, who also delivers food with UberEats, wants to swallow the company. This merger will be approved after close scrutiny, said research analyst Robert Mollins of research firm Gordon Haskett. GrubHub and Uber could argue that this is the only way to get out of the red. Uber shares gained 2.4 percent.
More: Comparison of stock market crises
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