Asian shares were moderately lower Friday after an overnight rout on
Fear that a so-called “second wave,” is already coming has punctured bubbling optimism that a quick economic recovery was already underway. That pushed the Dow Jones Industrial Average down almost 7% on Thursday.
Losses were milder in
Although daily newly confirmed cases in
“It appears that worries about ‘second wave’ of infections have hit, with a swell in the number of cases in states like
“Reports of positive cases from the global protest marches are probably also unearthing fears that a ‘second wave’ may squander the costly curve flattening efforts taken earlier,” Ogawa said.
The Dow Jones Industrial Average sank 6.9%, or 1,861.82 points, to 25,128.17. The S&P 500 dropped 5.9% to 3,002.10, its worst day since mid-March when stocks went through repeated harrowing falls as the virus lockdowns began.
The Nasdaq composite, which rose above 10,000 for the first time a day earlier, lost 527.62 points, or 5.3%, to 9,492.73.
The S&P 500 rallied 44.5% between late March and Monday, erasing most of its losses tied to the pandemic. Skeptics have been saying the rally was overdone.
As businesses reopen and people emerge from stay-at-home orders, cases are climbing in nearly half the states, according to an
“Not surprisingly, a lack of preventative behavior has led to a resurgence in COVID-19 cases around the country, and the stock market is having another gut check,” said
Those factors, along with the recent run-up in stock prices, set the stage for the wave of selling Thursday.
Small company stocks are bearing the brunt of the selling, a signal that investors are becoming more pessimistic about a broad recovery in the economy. The Russell 2000 index fell 111.17 points, or 7.6%, to 1,356.22. European and Asian markets also fell.
Bond yields also fell, a sign of increasing caution among investors who shifted more money into government bonds.
The yield on the 10-year
Emergency rescue efforts by the Fed and
In other trading, benchmark
The dollar rose to
AP Business Writers