S&P 500, Dow drop as US-China tension resurges, Buffet dumps airlines stocks


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S&P 500, Dow drop as US-China tension resurges, Buffet dumps airlines stocks

On Monday, the 4th of May 2020, trade-sensitive Dow Jones alongside benchmark Standard & Poor 500 had extended their losing streak in to third straight day in a row, as an abrupt resurgence in US-China tension following blazing questions on whether the pathogen responsible for the pandemic outbreak was crafted intentionally in a Wuhan lab, had tilted down the market, while the American billionaire entrepreneur Warren Buffet’s Berkshire Hathaway’s latest move to ditch out stocks of 4 major US airlines had intensified an exasperated outcry in travel and tourism indices.

As a matter of fact, shares’ prices of four major US airlines such as Delta Air, American Airlines, Southwest Airlines alongside United Airlines had shrugged off between 7 to 10 per cent following Buffet’s latest remark that the “world had changed” for the aviation industry, while the stocks of Berkshire itself lost 3 per cent after the investment conglomerate had wiped off roughly $50 billion in quarterly losses.

Meanwhile, referring to Buffet’s Saturday (May 2nd) comments in Berkshire’s annual meeting when the 89-year-old investment Megamind had cautioned of horrendous financial fallouts of the pandemic outbreak, a co-investment strategist at John Hancock Investment Management, Emily Roland said on Monday (May 4th), “His narrative was relatively sober compared to his posture over the years.

His comments were relatively cautious compared to what we have heard from him before. ” Citing statistics, on Monday’s (May 4th) market Wall St. wrap-up, the Dow fell by 0.70 per cent to 23,556.77 and S&P 500 shed 0.30 per cent to 2,822.35, while the tech-heavy Nasdaq Composite rose by 0.39 per cent to 8,638.13, mostly buoyed up by the gains of Microsoft Corp. and Amazon.com Inc.