Jakarta, CNBC Indonesia – The stock market of the United States (US), Wall Street, sinks more than 2% at the end of this week’s trade. This is the second correction this week after investors worried the US will impose strict social restrictions due to an increase in cases of the corona virus (covid-19)
The Dow Jones index dropped 2.8% to 25,015.55, the S&P 500 index dropped 2.4% to 3,009.05 and the Nasdaq index was corrected 2.6% to 9,757.22. An increase in corona cases made hopes of economic recovery in the US fade, after the states of Texas and Florida ordered the bars to close, along with other measures intended to stop a big jump in the case of the virus.
Investor confidence in the recovery of the US economy “was hampered by concerns that COVID-19 still exists because new cases still exist,” Analyst The Charles Schwab was quoted as saying by AFP on Saturday (6/27/2020).
Texas and Florida are the two most populous states in the US with a population of about 50 million people. Other southern and western countries, including Arizona and Georgia, also saw a big jump in corona cases.
“We face serious problems in certain fields,” top infectious disease expert Anthony Fauci said Friday when the Corona Virus Task Force President Donald’s administration Trump has his first public briefing in two months.
US stock exchanges have been volatile this week as investors try to assess the implications of the current phase of the coronavirus crisis and whether it will be as devastating as the economy as it closed earlier this year.
“Most of the rally that equity enjoyed between the end of March and early June was to chat that lock restrictions would be relaxed, and then they were loosened, so now there are fears the process can be reversed,” said CMC Markets UK analyst David Madden.
But there was another significant factor in Friday’s defeat on Wall Street, which pushed all three major indices into the red zone for this week.
Major sank-bank shares including Bank of America and Goldman Sachs fell more than six percent after the Federal Reserve late Thursday ordered the industry to delay repurchases and limit dividend payments amid uncertainty about coronaviruses.
Facebook slumped 8.3% as it faced a widening boycott of major advertisers because criticism was not enough to crack down on hate speeches and incitement to violence.
After Unilever joined Verizon among large companies that delayed spending on the platform, Chief Executive Mark Zuckerberg said Facebook would ban “broader categories of hate content.”
