Stock market news live updates: Stock selloff accelerates as coronavirus cases surge in some states
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Stocks sank Wednesday, with the S&P 500 and Dow selling off as rising numbers of Covid-19 infections in some regions spooked investors.
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- Florida and California on Wednesday reported record high one-day tallies for new confirmed coronavirus cases at 5,508 and 7,149, respectively.
- Arizona on Wednesday saw another 1,795 positive cases after adding a record 3,591 on Tuesday.
- In Texas, Houston Mayor Turner said that the city’s intensive care units were at 97% of capacity.
Meanwhile, New York Governor Andrew Cuomo announced Wednesday that travelers to New York, New Jersey and Connecticut coming from Covid-19 hot spots would be subject to a 14-day quarantine.
“The latest coronavirus news is not positive for the stock market which was betting the worst of the pandemic recession was behind us,” Chris Rupkey, chief financial economist for MUFG Union Bank, said in an email.
“All the hopes of investors looking for a better economy to improve the bottom lines of companies shut down in the recession have been dashed. Forget about the fears of the virus coming back in the fall, the number of new cases and hospitalizations in states like Arizona, Texas, and Florida says the threat is happening right now.”
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Arizona on Wednesday saw another 1,795 positive cases after adding a record 3,591 on Tuesday.
In Texas, Houston Mayor Turner said that the city’s intensive care units were at 97% of capacity.
The latest coronavirus news is not positive for the stock market which was betting the worst of the pandemic recession was behind us,” Chris Rupkey, chief financial economist for MUFG Union Bank, said. “All the hopes of investors looking for a better economy to improve the bottom lines of companies shut down in the recession have been dashed.
Forget about the fears of the virus coming back in the fall, the number of new cases and hospitalizations in states like Arizona, Texas, and Florida says the threat is happening right now.”
Stock market sell off because of the COVID 19? Could be another sought after excuse. After all, how solid is the bedrock foundation of the economy considering the bluster, threats, excuses and questionable spending of governments, especially the US these past four years? Space Force---really? Those tax cuts of what seem like decades ago? How much per day are the "Border Incarcerations" costing the taxpayers? And there dozens more instances.
Something doesn't add up. And next week will 'the markets' rebound in full vigor? And what would that be based on?
I think its useful to remember that the Stock market is not influenced by just one factor. In fact the relative influences of different things change frequently-- often for periods as short as day to day (and sometimes some news event during the day will result in a significant turn around in the middle of that day!)
For example, the outlook on the path of the virus. If several pharma companies suddenly announce that finding a vaccine begins to look like it will take much longer than expected...the market dips!
But OTOH if they announce that it looks like a vaccine will be invented much sooner than expected-- the market has a pop . . .
And to make the situation even more complex...some news will impact the market for just a day...while others after analysis will have a much larger impact.
Personally I find it revolting that the 'so called markets' would react in any manner as to what is being done in laboratories. I say this only because the US is a First World Nation and supposedly the leader in the world and our Medical Fields must not be 'accolated' for doing what they are supposed to be doing in the first place.
This is why I believe 'the so called markets' are flawed and without a true purpose.
Yes that's a major factor. But its not the only one,
In addition (and here's a fact that's unknown to many inexperienced investors)-- there's often a disconnect between the performance of the Stock Market-- and the actual strength of the economy!!!
P.S: Another factor. Many people frequently do not act rationally. Especially when power emotions are involved (this seems to be especially true when the situation involves love or large amounts of money). So often the market truly does act "irrationally".
Or another nugget. Those who control the majority of the wealth are assured their standing is solid regardless of most detrimental occurrences. However, The Trump Administration's use of hiding or covering up 'problems' may be coming to head.
Examples: Porn stars fluffed over and no damage. Helsinki statements by the president obliterated by a cascade of new distractions. Millions signing up for unemployment with resulting massive government spending also being sidelined by protests and civil unrest also being diluted by The Administration's responses on a host of similar and not so similar issues.
However, the 'latest resurgence' of the COVID 19 may be cause for a true alarm to these holders of wealth. Not so much a worry for their wealth but a worry for their security and future prospect because finally they have to accept that their own financial standing is pinned to the financial standing of those who dwell on Main Street and for each of them the incompetence and the sheer ingrained indifference of Donald J. Trump is something they long denied but now have to reckon with.
This is not a prediction. But, it is possible the 'so called markets' will undergo a slow decline in the coming months settling into territory as they were in the last days of the Obama presidency. If this occurs it seems to me that a logical conclusion would be that the 'holders/controllers' of the wealth have successfully hedged their bets.
Very thoughtful post..... I think there is much truth in what you state.
There had been hopes that the advent of hot weather will somehow miraculously end the virus. But I was looking at the map-- most of the news cases are in the southern part of the U.S.-- places who are now well into summer and have much hotter climates than those in the north. So it seems hot weather is no hindrance to the spread of the virus!
(Even in California, apparently the big increases are in the southern (hotter) part of the state. In fact I saw that some of those hospitals are full-- so when they can they are shipping some patients to hospitals in the northern part of the state that still have empty beds).
Many of us had hopes that thensummer and hot weather would slow down new cases...but sadly it now appears that that won't happen.:-(
We as a country are way better than the results we are getting....
Country and leadership are two different things.