Wall Street ends down as a result of the increasing cases of the virus and the weakness of the economic vision
On Wednesday, the three main indexes on Wall Street suffered their biggest daily drop in percentage in nearly two weeks while an outbreak of coronavirus in the United States has intensified fears of a new series of closures of government and the worsening of the economic damage.
The Nasdaq, which had been Tuesday, its fifth record close, broke a sequence of eight consecutive days, that was the longest since December 2019.
The session marked the highest percentage decrease for the three indices, including a 2.6% decline for the S&P 500 since June 11, when the S&P has dropped from 5.89%.
The United States recorded the second largest increase of infections since the beginning of the health crisis, with an upsurge of case in States where the restrictions intended to contain the disease have been lifted early.
The governors of New York, New Jersey and Connecticut have announced that visitors from States with high rates of infection with coronavirus must self-quarantine for 14 days to their arrival. “Today is finally the day where the markets have agreed with the fact that the increase of COVID-19 could mean a slower recovery of the economy,” said Art Hogan, chief strategist of markets at National Securities in New York.
The pandemic appears to cause damage to economic activity more important and more profound than we thought. The IMF said it was now looking to a decrease in world production of 4.9%, against a contraction of 3.0% expected in April.