• 4 hours Crypto-Mining Immigration Could Be The Start Of A New Trend
  • 2 days Hawkish Fed Sends Gold Prices Crashing
  • 3 days Bezos Is Heading To Space This Sunday
  • 6 days El Salvador’s Surprise Bitcoin Move
  • 9 days Markets Unfazed As Inflation Hits 13-Year High
  • 10 days How the Token Economy is Disrupting Financial Markets
  • 12 days FBI Investigating 100 Types Of Ransomware Attacks
  • 14 days Fed Ends Corporate Credit Emergency Lending Program
  • 16 days AMC Becomes the Latest Winning Meme Stock After GameStop
  • 17 days The Real Reason Your 401k Has Been Lagging
  • 18 days China Lifts Cap On Births, Allows Three Children Per Couple
  • 20 days The Market Is Ripe For Another GameStop Saga
  • 23 days Senate Grills Big Banks Over Pandemic Opportunism
  • 24 days Cannabis Has A Major Cash Problem
  • 25 days Ransomware Netted Criminals $350M In 2020 Alone
  • 26 days Russia Is Taking On Google
  • 27 days Chinese Regulators Deal Another Big Blow To Bitcoin
  • 28 days Ohio Residents Brave Vaccine for Chance To Win $1M
  • 30 days Inflation Is Coming. Are You Prepared?
  • 31 days Travel Might Get Another Supersonic Disruption
3 Semiconductor Stocks Looking Great On EV Demand

3 Semiconductor Stocks Looking Great On EV Demand

Computer chips power everything in…

Netflix Earnings Red Alert: Subscriptions Could Underwhelm

Netflix Earnings Red Alert: Subscriptions Could Underwhelm

Investors who were expecting Netflix…

Tom Kool

Tom Kool

Writer, Safehaven.com

Tom majored in International Business at Amsterdam’s Higher School of Economics, he is now working as news editor for Oilprice.com and Safehaven.com

Contact Author

  1. Home
  2. Investing
  3. Stocks

DOW Plunges Amid WInter COVID-19 Surge Fears

stock market

The Dow Jones Industrial Average traded as much as 800 points lower today before paring a small portion of those losses after the U.S. hit a record number of daily coronavirus cases over the weekend.

On the worst day since the “Black Monday” market crash in 1987, in mid-March, DOW dropped nearly 3,000 points, when President Donald Trump said the worst of the outbreak could last until August.

August is now long gone, and the U.S. has reported more than 83,000 daily new infections in the past two days, surpassing the July record of 77,300 new daily cases. Nearly half of the states have reported their daily record high of COVID-19 cases in the month of October alone. 

On the national level, hospitalizations have also been rising with more than 41,753 people admitted as of Sunday, compared to 36,428 the Sunday before.  

Today is the biggest one-day tumble since early September when the Dow plunged 800 points. 

Compared to the Dow’s previous close at 28,533.57 on Friday, it closed today 650 points down, at 27,685.38. 

The travel and hospitality sectors took the heaviest hit. 

Wynn Resorts was down 6% and Royal Caribbean saw its shares shed 5.7%. 

American Airlines was down 7%, Delta Airlines was down 2.8%, and Boeing fell 2.6%.

Oracle stock was down by 3.3%, while American Express shares were down 2.8%. Microsoft shares dipped 0.8%.

However, the same as at the beginning of the pandemic, certain companies are going to benefit from the news on record-high new infections. Amazon shares increased 1%, while Zoom gained 4.5%.

Adding to virus concerns, the market also reacted to the failing hopes that a stimulus deal would be reached before the election.

Talks continued through last week between House Democrats and the Trump administration, but a final agreement remains elusive. 

Even though federal aid has been repeatedly mentioned during campaign rallies, the two sides cannot agree on major issues such as coronavirus testing, jobless benefits and state and local funding.

The market may also be pricing in what is being perceived--rightly or wrongly--as the White House’s capitulation to COVID-19.  

White House chief of staff Mark Meadows told CNN on Sunday that the U.S. was "not going to control" the coronavirus pandemic.

"We are not going to control the pandemic. We are going to control the fact that we get vaccines, therapeutics and other mitigation areas," Meadows said.

Since the start of the pandemic, more than 8 million Americans have been infected with COVID-19 and there have been more than 225,000 fatalities. 

Recent research by the University of Washington’s Institute for Health Metrics and Evaluation (IHME) said that winter weather will drive Americans indoors and that the U.S. could see more than 500,000 total deaths by the end of February if states continue to ease pandemic restrictions.

“We think the key point here is that there’s a huge winter surge coming. At this point, the wave isn’t fully preventable, but “expanding mask use is one of the easy wins for the United States,” Christopher Murray, a lead author on the paper said.

Authors of the research also claim that mask-wearing compliance could reduce a projected death toll over the next four months by 130,000 people.

By Tom Kool for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment