Why is the stock market slumping now?

Thursday did not start well in Asia: the most important stock indexes were all in the red when the Swiss stock exchange opened in Zurich. The Swiss Market Index (SMI) also lost a lot of ground, closing in the evening down 3.14 percent, around 319 points lower. Ultimately, there was a real massacre and panic sales in the USA.

The diver on Wall Street was triggered by a gloomy economic assessment by the US Federal Reserve and the fear of a second wave of corona. The US leading index Dow Jones Industrial slumped 6.90 percent on Thursday. With 25,128 points, he found himself at the level of the end of May. This was the largest percentage daily loss on a closing price basis since the black week in March. In the meantime, the Dow would have almost dropped below the 25,000 mark. In the end, the market-wide S&P 500 fell 5.89 percent to 3002 points.

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