Wall St. slumped as pandemic cases rise, stimulus hope fades

by   |  VIEW 1511

Wall St. slumped as pandemic cases rise, stimulus hope fades

On Monday, in a thin-volume trading session, all three key indices of Wall St. fell across the board with benchmark S&P 500 reporting its steepest intra-session plunge in more than four weeks, as a likely second wave of pandemic outbreak in the United States and Europe alongside a lack of progress in US stimulus talks in the Capitol Hill had poured fresh scorns over investors’ sentiments.

In point of fact, Monday’s tottering in the Wall St. was almost entirely prodded by market participants’ worries over a second round of pandemic-led business closure, which in effect would simmer the prospects of an economic recovery, while waning hopes of a US relief bill before the November 3 election day had added to further woes.

Wall St. ends sharply lower as travel stocks bear the heaviest brunt

On top of that, as the United States, France and Russia had reported a record number of pandemic cases on Monday, fears over a forced lockdown measure ratchet up, while the Democratic US Presidential candidate Joe Biden, whose triumph would likely to lead to an abrupt doom in the US stocks, was quoted saying earlier in the day that the United States should brace for a painful winter full of disease, death and despair, eventually rattling the investors’ nerves.

Citing statisitcs, on Monday’s Wall St. closure, travel and energy stocks had led the losses with trade-sensitive Dow faltering as much as 2.29 per cent to 27,685.38, while S&P 500 shrugged off 1.86 per cent to 3,400.97 and tech-heavy Nasdaq tottered 1.64 per cent to 11,358.94.

Meanwhile, addressing to worries of a pandemic resurgence which would likely to stem another round of forced business closure, should the Democrats triumph in November 3 US Presidential election, a chief investment strategist at State Street Global Advisors in Boston, Michael Arone said on the day’s Wall St.

round off, “Fears about COVID-19 resurgence and the continued failure to reach a fiscal policy package between Republicans and Democrats has investors unnerved. Those are the two biggest drivers of today’s decline.