Dow Jones falls 2.3% in the worst trading session since September 3 with an increase in Covid cases in the USA and lack of stimulus agreement

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SAO PAULO – The American stock indexes fell sharply on Monday (26) with the greatest tension due to the increase in the number of cases of coronavirus infection in the United States, in addition to the lack of a stimulus package announcement.

The Dow Jones closed down 2.29% at 27,686 points, its worst trading session since September 3. Meanwhile, the S&P 500 fell 1.86% to 3,400 points, while the Nasdaq technology index fell 1.64% to 11,358 points.

The worsening of investor mood comes after data compiled by Johns Hopkins University show that daily coronavirus cases in the U.S. have increased by an average of 68,767 in the past seven days, a record.

On Sunday, more than 60,000 cases were reported, after a maximum of 83,000 new infections on Friday and Saturday, surpassing the old 77,300 cases reported in July.

“For me, this is Phase 2 of the pandemic,” said Frank Rybinski, chief macro strategist at Aegon Asset Management, to CNBC. “Until we can eradicate the virus, it will be like a gray cloud” on the market. Rybinski added that his company has “reduced the risk” of its portfolios in recent months.

Another factor that has weighed on the market today is the cooling of the conversation between Republicans and Democrats in Congress for a new economic stimulus package.

White House economic adviser Larry Kudlow said this morning that negotiations have slowed, but noted that they are still ongoing.

House Speaker Democrat Nancy Pelosi said in a statement that: “In all of our legislation, we emphasize the importance of testing, but the government has never complied. The Republicans’ continued surrender to the virus – particularly amid the recent spate of cases – is official bad faith. ”

She also noted that an agreement must be reached “as soon as possible”, but added that “we cannot accept the government’s refusal to crush the virus, honor our heroes or put money in the pockets of the American people”.

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