The peak record of new cases of coronavirus in several States, weaken the hopes of an economic recovery smooth. California and Florida have reported their peaks of major newspapers in the new case of coronavirus, while Houston has stated that its beds in intensive care units were almost at full capacity. New York, New Jersey and Connecticut have also ordered the visitors to certain States of the hotspot of quarantine for 14 days.
On Wednesday, the securities negatives have plunged the market into a downward spiral. The Dow Jones has lost about 700 points, while the S&P 500 and the Nasdaq were down, respectively, 2.5% and 2.1%. The three benchmarks have posted their worst day since June 11. The Nasdaq, which is rich in technology, has also marked a sequence of wins to eight days.
“The market is optimistic about the re-opening of the economy and the return to normal life, but the virus may have other ideas,” said Chris Zaccarelli, director of investments at Independent Advisor Alliance, in an e-mail. “The market is once again caught in the cross fire of the growing number of cases Covid-19, protectionism and trade policy. ”
The administration Trump is considering new tariffs on exports of $ 3.1 billion from France, Germany, Spain and the United Kingdom, according to a notice from the us trade representative released on Tuesday evening. The new taxes on the olives, the beer, the gin and the trucks can go up to 100%.
Investors will be watching the latest data on compensation claims without a job Thursday at 8: 30 a.m. ET. Economists surveyed by Dow Jones had expected a total of 1.35 million first applications for unemployment insurance for the week ending 20 June, which would be a decrease compared to 1,508 million for the previous week. Applications weekly of the unemployed have remained above 1 million for 13 weeks, as the pandemic has overwhelmed the labour market.
Subscribe to CNBC PRO for information and proprietary research, as well as live programs on the business day around the world.