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(Reuters) – US stock markets are dropping on Thursday, with the S&P 500 and Dow Jones indices reaching a weekly low amid investor fears over the second wave of the coronavirus epidemic and the gloomy economic outlook from the Federal Reserve.
The S&P 1500 index fell 7.4%, while shares of cruise operators Norwegian Cruise Line Holdings Ltd and Royal Caribbean Cruises Ltd fell 13.4% and 8%.
Earlier Reuters estimates indicated that the number of cases of coronavirus in the US on Wednesday exceeded 2 million, while the number of new cases increased slightly after five weeks of decline.
Meanwhile, the CBOE volatility index, known as the Wall Street Fear Index, has risen to a high since May 15th.
“The market has grown because they are waiting for 2021 and say that we will go through this and then everything will return to normal,” said Sean O’Hara, president of Pacer ETF Distributors.
“If anything can really change the trajectory, it is if we have a big leap in the second wave. This is a big fear.”
The index fell by 18:24 Moscow time by 3.74% to 25.979.59 points, the S&P 500 – by 3.08% to 3.092.00 points, and lost 2.21% and stood at 9.799.09 points.
The banking sector, which usually responds positively to monetary tightening, sank 4.8% after the Fed management predicted that rates would remain close to zero until at least 2022.
In addition, the Fed forecast provides for the reduction of the US economy by 6.5% in 2020. [nR4N2BC00N]
All 11 industry sub-indices of the S&P 500 are traded in the red, with the energy sector, the financial sector and real estate companies leading the decline.
Stocks Boeing co (NYSE 🙂 fell 9.4% after an important supplier of Spirit AeroSystems Holdings Inc announced that staff on the Boeing 737 program will go on a 21-day vacation.
Paper Spirit AeroSystems fell 12.8%.
Grubhub Inc’s food delivery service quotes jumped 5.2% thanks to news that European Just Eat Takeaway.com NV has agreed to acquire the company for $ 7.3 billion.
(Medha Singh and Devik Jain. Translated by Vladimir Sadykov. Edited by Anastasia Teterevleva)
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