new York Fear of greater economic damage from the rapidly spreading corona virus pushed Wall Street into the red at the end of the week.
The Dow Jones index fell 4.1 percent to 21,636 points. The broader S&P 500 slipped 3.4 percent to 2,541 points. The technology-heavy Nasdaq Composite also fell 3.8 percent to 7,502 points.
Nevertheless: Despite a nervous start to the week, all three important indices have risen by 13 to 17 percent so far over the course of the trading week.
The reason for this was an unprecedented monetary easing by the US Federal Reserve and a government stimulus bill of around two trillion dollars. The House of Representatives is expected to vote on the law this Friday.
By definition, the Dow Jones Index is even back in a bull market as it has already risen more than 20 percent from its low this week during the course of the trade.
But since both the Dow Jones Index and the S&P 500 are still more than 20 percent below their record highs of mid-February, many traders are certain: Without evidence that the coronavirus can be contained, a further recovery in the should Markets are unlikely.
USA could become the epicenter of the pandemic
“This week’s earnings do not really reflect the market’s confidence that the corona virus outbreak has peaked and that the economic turmoil is over,” said FXTM market analyst Han Tan.
The United States overtook China as the country with the most coronavirus cases with more than 97,000 infections and 1,478 deaths on Thursday and is expected to become the epicenter of the pandemic, according to the World Health Organization (WHO).
A record rise of three million unemployed people per week in the United States gave a first glimpse of the extent of the economic damage.
Oil stocks Exxon Mobil and Chevron fell about six percent, following the fall in crude oil prices.
Boeing shares slid 10 percent. But after an increase of just under 85 percent this trading week, profit taking shouldn’t come as a surprise to investors. Last Monday, the paper cost around $ 94, now $ 162. The paper cost over $ 180 on Thursday.
According to US Treasury Secretary Steve Mnuchin, the corona virus stimulus package is not a bailout for airlines. At the same time, he said in an interview with Fox Business that the aircraft manufacturer Boeing had no intention of using federal funds.
More: Get in or wait? The Dax has fallen low, but not cheap