· S&P 500 tumbles on fears of virus resurgence in economic reopening
The S&P 500 dropped 2% on Tuesday as investors took profits following a warning from the top U.S. infectious disease expert that premature moves to reopen the nation’s economy could lead to novel coronavirus outbreaks and set back economic recovery.
Wall Street’s three major averages closed around their session lows. The Dow Jones Industrial Average fell 457.21 points, or 1.89%, to 23,764.78, the S&P 500 lost 60.2 points, or 2.05%, to 2,870.12 and the Nasdaq Composite dropped 189.79 points, or 2.06%, to 9,002.55.
The Cboe Volatility Index, known as Wall Street’s fear gauge, ended 5.47 points higher at 33.04. It was the biggest one-day point gain for the VIX in more than three weeks.
The index suffered its first decline in four sessions as investors weighed the potential for a second wave of virus infections against hopes that easing of stay-at-home restrictions could ignite a recovery in the U.S. economy, which has been severely damaged by the virus.
Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, told Congress that the virus, which has already killed 80,000 Americans, was not yet under control and that there would not likely be a treatment or vaccine in place by late August or early September.
And reports of new clusters of coronavirus infections in countries such as China, South Korea and Germany where lockdowns had been lifted appear to have added to worries.
· Stock futures fall slightly, extending losses from the previous session
U.S. stock futures moved lower in overnight trading and pointed to losses at the open on Wednesday, after a sharp sell-off in the previous session.
Dow futures fell 100 points, indicating a loss of 0.9%. The S&P 500 and Nasdaq were also set to open lower, with losses of 1% and 0.8%, respectively.
· European markets close mixed as investors monitor new coronavirus cases and reopening efforts
European stocks closed mixed on Tuesday as investors became increasingly concerned about a potential second wave of coronavirus cases.
The pan-European Stoxx 600 reversed early losses to finish around 0.3% higher. Major bourses were pointing in different directions, while telecoms stocks added 2.7% and the leisure sector slid 1%.
· Stocks in Asia Pacific slip amid risks of new infections as economies reopen
Stocks in Asia Pacific traded lower on Wednesday as caution remains over a recent resurgence in coronavirus cases in certain countries regionally.
In Japan, the Nikkei 225 dropped 1.28% in early trade as shares of index heavyweight Fast Retailing fell more than 2%. The Topix index also slipped 0.99%.
South Korea’s Kospi declined 1.07%.
Meanwhile, shares in Australia also traded lower, as the S&P/ASX 200 dipped 0.91%.
Overall, the MSCI Asia ex-Japan index traded 0.41% lower.
Reference: CNBC, Reuters
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