Please ensure Javascript is enabled for purposes of website accessibility

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

4 hours ago

Trump Says He’s Willing to Let Migrant Farm Laborers Stay in US

5 hours ago

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

24 hours ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

1 day ago

Trump’s Sweeping Tax-Cut and Spending Bill Wins Congressional Approval

1 day ago

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

1 day ago

US Supreme Court to Decide Legality of Transgender School Sports Bans

1 day ago

Nvidia Set to Become the World’s Most Valuable Company in History

1 day ago

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

1 day ago
S&P 500 Sinks 3.5% as Surging Virus Cases Lead to Shutdowns
gvw_ap_news
By Associated Press
Published 5 years ago on
October 29, 2020

Share

The Dow Jones Industrial Average sank 943 points Wednesday as surging coronavirus cases forced more shutdown measures in Europe and raised fears of more restrictions in the U.S.

The S&P 500 slid 3.5%, its third straight loss and its biggest drop since June. The benchmark index is already down 5.6% this week, on track for its biggest weekly decline since March. That’s when the market was in the midst of selling off as strict lockdowns around the world choked the economy into recession.

The selling in U.S. markets followed broad declines in Europe, where the French president announced tough measures to slow the virus’ spread and German officials agreed to impose a four-week partial lockdown. The measures may not be as stringent as the shutdown orders that swept the world early this year, but the worry is they could still hit the already weakened global economy.

In the U.S., cases are increasing in just about every state and the number of deaths and hospitalizations due to COVID-19 are on the rise. Even if the most restrictive lockdowns don’t return, investors worry that the worsening pandemic could scare away customers of businesses regardless and sap their profits. The U.S. economy could lose momentum just as prospects for more economic support from Washington have dwindled as Election Day nears.

“Many people had come to believe we were at least stable, and now we’re having a second uptick, which throws potential GDP and everything else up in the air,” said Randy Frederick, vice president of trading and derivatives at Charles Schwab. ”I did not expect this level of volatility or this degree of a sell-off.”

The S&P 500 lost 119.65 points to 3,271.03. The Dow lost 943.24 points, or 3.4%, to 26,519.95. The Nasdaq composite slumped 426.48 points, or 3.7%, to 11,004.87. The selling was widespread, and 96% of stocks in the S&P 500 fell.

Investors Headed Into the Safety of U.S. Government Bonds

Crude oil tumbled on worries that an economy already weakened by the virus would consume even less energy and allow excess supplies to build higher. Benchmark U.S. crude dropped 5.7% to $37.39 per barrel. Brent crude, the international standard, fell 5.4% to $39.12 per barrel.

Instead, investors headed into the safety of U.S. government bonds. The yield on the 10-year Treasury note fell to 0.77% from 0.79% late Tuesday. It was as high as 0.87% last week.

A measure of fear in the stock market touched its highest level since June, when the market suddenly tumbled amid concerns that a “second wave” of coronavirus infections had arrived. The VIX measures how much volatility investors expect from the S&P 500, and it climbed 20.8% Wednesday.

Even the continued parade of better-than-expected reports on corporate profits for the summer failed to shift the momentum.

Microsoft, the second-biggest company in the S&P 500, reported stronger profit and revenue for its latest quarter than expected. That’s typically good for a stock, but Microsoft nevertheless slumped 5%. It gave a forecast for the current quarter that was relatively in line with Wall Street forecasts, but analysts noted some caveats in it.

UPS fell 8.8% after also reporting better-than-expected earnings, though it said the outlook for its business is too cloudy due to the pandemic to offer any forecasts for its revenue or profits in the current quarter.

Investors’ Hopes That Congress and the White House Could Soon Offer More Big Support for the Economy

Companies broadly have not been getting as big a pop in their stock prices as they typically do after reporting healthier-than-expected profits. Analysts say that suggests good news on profits has already been built into stock prices and that the market’s focus is elsewhere.

Investors’ hopes that Congress and the White House could soon offer more big support for the economy as it struggles through the pandemic have largely faded. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have continued their talks, but investors see little chance of a deal happening before Election Day next week.

Economists say the economy likely needs such aid after the expiration of the last round of supplemental unemployment benefits and other stimulus approved by Washington earlier this year.

Uncertainty about the upcoming presidential election has also been pushing markets around.

“The market never likes uncertainty,” said Stephanie Roth, portfolio macro analyst at J.P. Morgan Private Bank. “People are just taking profits ahead of the election, to some extent.”

The race seems be getting tighter than it was just a few weeks ago, said Jamie Cox, managing partner for Harris Financial Group. “It has markets somewhat unnerved that the prospects of a contested election are back in the mix,” he said.

Cox said he expects more calm in the markets in November after the election passes and some of the uncertainty over a new aid package fades.

“Aid is coming regardless. There’ll be no political motivation to hold it back after the election,” he said. “There’s plenty of desire to get money out to people so I think it will happen one way or another in November.”

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Madre Fire Burns More Than 52,000 Acres in San Luis Obispo County

DON'T MISS

RIP John Harris: Fresno County Rancher, Racehorse Breeder Was a Visionary Leader Who Leaves a ‘Profound Legacy’

DON'T MISS

Valadao, Costa Spar on What Passage of Trump’s Bill Means for Medicaid Recipients

DON'T MISS

US Military Says 200 Marines Being Sent to Support ICE in Florida

DON'T MISS

Boeing Secures $2.8 Billion US Satellite Contract

DON'T MISS

Kaweah Health Names Its New Chief Nurse. She’s From Texas

DON'T MISS

Clovis Police Say At-Risk Missing Woman Found Dead in Mariposa County

DON'T MISS

Over 100 Former Senior Officials Warn Against Planned Staff Cuts at US State Department

DON'T MISS

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

DON'T MISS

‘Reservoir Dogs’ and ‘Kill Bill’ Actor Michael Madsen Dies at 67

UP NEXT

Colombia President Recalls Ambassador to US

UP NEXT

US-Backed 60-Day Gaza Ceasefire Envisions Gradual Return of Hostages, Official Says

UP NEXT

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

UP NEXT

US Paves Way to Resume Ethane Exports to China Amid Trade Truce

UP NEXT

US Imposes New Sanctions Targeting Iran Oil Trade, Hezbollah, Treasury Dept Says

UP NEXT

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

UP NEXT

Poorest Americans Dealt Biggest Blow Under Senate Republican Tax Package

UP NEXT

From Victims to Perpetrators: Israeli Soldiers’ Nazi Comparisons and the Unfolding War Crimes in Gaza

UP NEXT

Iran Enacts Law Suspending Cooperation With UN Nuclear Watchdog

UP NEXT

Ukraine Voices Concern as US Halts Some Missile Shipments

Oil Dips Ahead of Expected OPEC+ Output Increase

4 hours ago

613 Killed at Gaza Aid Distribution Sites, Near Humanitarian Covoys, Says UN

4 hours ago

Fresno County Authorities Investigating Suspicious Death of Transient Man

4 hours ago

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

4 hours ago

Israeli Military Kills 20 in Gaza as Trump Awaits Hamas Reply to Truce Proposal

5 hours ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Rachelle Maria Blanco

5 hours ago

Russia Pounds Kyiv With Largest Drone Attack, Hours After Trump-Putin Call

5 hours ago

Boxer Chavez Jr Expected to Be Deported to Mexico to Serve Sentence, Mexican President Says

5 hours ago

Markets’ 90-Day Tariff Pause Rollercoaster Nears an Uncertain End

5 hours ago

Trump Says He’s Willing to Let Migrant Farm Laborers Stay in US

5 hours ago

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

President Donald Trump is scheduled to sign a massive package of tax and spending cuts into law at a ceremony at the White House on Friday, ...

3 hours ago

President Donald Trump speaks during a press conference in the Roosevelt Room at the White House in Washington, D.C., U.S., May 12, 2025. (Reuters File)
3 hours ago

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

The Madre Fire burning near New Cuyama has scorched 70,801 acres as of Friday, July 4, 2025, afternoon, making it California’s largest wildfire of the year, with only 10% containment and multiple evacuation zones in place. (CalFire)
3 hours ago

Madre Fire Spurs Evacuations Across 3 Counties, Grows to More Than 70,000 Acres

4 hours ago

Clovis, Sanger, Madera, and Bass Lake Will Light the Sky With Fireworks Shows Tonight

A pumpjack operates at the Vermilion Energy site in Trigueres, France, June 14, 2024. (Reuters File)
4 hours ago

Oil Dips Ahead of Expected OPEC+ Output Increase

Palestinians gather to collect what remains of relief supplies from the distribution center of the U.S.-backed Gaza Humanitarian Foundation, in Rafah, in the southern Gaza Strip, June 5, 2025. (Reuters File)
4 hours ago

613 Killed at Gaza Aid Distribution Sites, Near Humanitarian Covoys, Says UN

Billy Wayne Sinisgalli, a 54-year-old transient known locally as Wayne, was found dead along a rural Fresno road Wednesday in what authorities are investigating as a suspicious death. (Fresno County SO)
4 hours ago

Fresno County Authorities Investigating Suspicious Death of Transient Man

Israel Builds a Fence Around the West Bank
4 hours ago

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

A view of the site of Thursday's Israeli strike that damaged and destroyed residential buildings, at Shati (Beach) refugee camp, in Gaza City, July 4, 2025. (Reuters/Mahmoud Issa)
5 hours ago

Israeli Military Kills 20 in Gaza as Trump Awaits Hamas Reply to Truce Proposal

Help continue the work that gets you the news that matters most.

Search

Send this to a friend