U.S. and Canadian stocks have continued their sharp sell-off in what is shaping up to be the markets’ worst week since late March, as rising coronavirus infections have shaken investors’ confidence in the global recovery. Also weighing on N.A. markets are uncertainties over the looming U.S. election, along with the failure of U.S. lawmakers to pass a much-needed fiscal stimulus package.
U.S. stocks fell sharply on Monday, with the S&P 500 posting its biggest daily decline in four weeks, as most U.S. states experienced record numbers of new coronavirus cases, increasing the probability of further lockdowns. By Monday’s close, the Dow was down 650 points, while the Nasdaq surrendered 189. The S&P/TSX Composite Index closed down 224 points as the energy sector fell more than 3%. Falling oil prices and a cold reception to Cenovus Energy’s takeover of Husky Energy weighed on the sector.
Markets were largely mixed on Tuesday as the Dow and S&P declined on disappointing earnings and failed stimulus, while the Nasdaq registered a small gain. The TSX also closed lower, despite a modest rebound in crude prices.
It was an especially rough Wednesday for N.A. markets, as the U.S. reported more than 73,000 new coronavirus cases Tuesday. The Dow lost 943 points – its fourth losing session in a row and worst day since June 11 — while the Nasdaq tumbled 425. Canada’s benchmark index was also hit hard, losing 434 points as oil plunged more than 5%.
U.S. stocks bounced back a bit Thursday after new data showed 751,000 Americans applied for new jobless benefits, down from 791,000 last week. Also boosting markets was news that U.S. GDP for Q3 increased at a 33.1% annual rate, by far the strongest quarterly pace of growth in records going back to the 1940s. While that’s good news, the U.S. economy is still smaller than it was before the pandemic, output is down 3.5% since the end of 2019, and the prospects for Q4 are anything but promising as coronavirus cases surge.
source https://richarddri.ca/markets-drop-sharply-over-surging-coronavirus-cases-looming-election/
Dri Financial Group 