Stocks plunge again as COVID-19 surge continues across US

US shares appeared poised for an additional sharp selloff Wednesday amid a continued surge in coronavirus infections that’s proven no indicators of slowing down quickly.

Futures contracts tied to the Dow Jones industrial common have been down 454 factors, or 1.6 %, at 26,911.00 as of 6:55 a.m. with each COVID-19 circumstances and hospitalizations on the rise across the nation.

That put the blue-chip index on tempo for its third straight day of losses together with the benchmark S&P 500, whose futures have been down 1.4 % as of 6:56 a.m. Futures for the tech-heavy Nasdaq 100 have been lately off about 1.1 % following a 0.8 % acquire on Tuesday.

The US has posted a report common of 71,532 new coronavirus circumstances over the previous seven days as the lethal pandemic climbed towards a 3rd peak, based on information from the COVID Tracking Project. The variety of folks presently hospitalized with the virus has additionally risen sharply over the previous month to 44,212 as of Tuesday, the info present.

The spike has raised fears in regards to the return of lockdown measures like those who kneecapped the worldwide financial system within the spring. Struggling European international locations have imposed restrictions in latest weeks, and Illinois officers will cut off indoor restaurant and bar service in Chicago on Friday amid a surge in infections there.

European markets additionally plummeted Wednesday following reviews that France may impose a nationwide lockdown to stem the tide of the virus. Paris’s CAC 40 index was lately down 2.6 %, whereas London’s FTSE 100 was off 1.5 %.

“Mainland European markets are once again at the forefront of a collapse in equity valuations, with a second bout of nationwide lockdowns raising the chance of a double-dip recession,” stated Joshua Mahony, senior market analyst at IG. “While regional action helped alleviate much of the negative market impact in recent months, the sharp ascent in COVID cases throughout Europe clearly calls for more dramatic measures.”

The drop in shares got here alongside a bounce within the CBOE Volatility Index, identified as Wall Street’s “fear gauge.” It had climbed to 36.35 as of 6:56 a.m., reaching its highest stage since early September as the Nov. 3 presidential election approached.

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