United States shares fell sharply on Monday (26) from weak trades, with the S&P 500 registering its biggest daily drop in four weeks, given the increase in coronavirus cases and the uncertainty about a fiscal relief project in Washington, obscuring the prospects for the American economic recovery.
The Dow Jones fell 2.29% to 27,685.38 points. The S&P 500 lost 1.86% to 3,400.97 points and the Nasdaq fell 1.64% to 11,358.94 points.
- World beat Covid daily cases 9 times in October, WHO data show
The United States, Russia and France set daily records for coronavirus infections. The number of Americans hospitalized with Covid-19 jumped to the two-month high.
Travel-related actions, vulnerable to Covid-19-related disruptions, declined sharply. The airlines’ S&P 1500 index fell about 5.6%, while cruise operators Carnival Corp and Royal Caribbean Cruises Ltd fell 8.66% and 9.65%, respectively, the latter the biggest drop among airlines. of the S&P 500.
“Fears about Covid-19’s resurgence and the continued failure to achieve a fiscal policy package between Republicans and Democrats made investors nervous,” said Michael Arone, chief investment strategist at State Street Global Advisors in Boston.
“These are the two biggest drivers of today’s decline.”
US House Speaker Nancy Pelosi spoke with Treasury Secretary Steven Mnuchin about the Covid-19 relief project. She remains optimistic that an agreement can be reached before the elections, said a spokeswoman for the Democratic MP.
The index considered to signal the level of fear on Wall Street reached its highest level in more than seven weeks, while uncertainty increased around the November 3 elections.. Some 60 million Americans have already voted, in a record early turnout, as Trump and his Democratic opponent, Joe Biden, enter the final week of the campaign.
US elections: over 60 million Americans have already voted in advance
The week marks one of the busiest of the third quarter balance sheet season, which will see results from major U.S. technology companies, including Apple Inc, Amazon.com Inc, Alphabet Inc, Google’s parent company and Facebook Inc.