world economy
Written by: Zhang Zijie
2020-06-12 04:03
Date of last update: 2020-06-12 04:11The US stock market broke out on June 11 due to the small stock market disaster. The Federal Reserve's conservative attitude towards the economic outlook and concerns about the possible outbreak of the second wave of the new coronavirus (COVID-19) epidemic have triggered panic selling by investors and dragged down the Wall Street stock market. The Dow fell more than 1,800 points, the worst trading day in the past three months.
The Dow closed down 1861.82 points or 6.90% at 25128.17 points, which was the first consecutive decline in three trading days in a month. %; The S&P 500 index reported 3002.10 points, down 188.04 points, or 5.89%, the largest drop since March 16.
After the Fed concluded its interest rate meeting on the 10th, it decided to maintain a near zero interest rate. Chairman Jerome Powell warned that the US economic recovery is a long road, and the number of local unemployment claims rose to a record-breaking 20.9 million. Be pessimistic about the prospects. In addition, after the reopening of the economy in many states, the number of diagnoses has rebounded, and the outside world is worried that the second wave of outbreaks will break out at any time.
The tourism-related and retail stocks that had benefited from the V-shaped rebound in the economy have become the hardest hit areas. The shares of American Airlines, United Airlines and Delta Airlines fell more than 14%; Carnival and Norwegian Cruise Line fell more than 15%; clothing retailer Gap fell more than 8 %.
Investors worried that the second wave of the epidemic may have caused Delta and other aviation stocks to fall sharply. (Reuters)
Evercore portfolio analyst Dennis DeBusschere believes that the increase in new cases in Texas, Arizona and other states, as well as recent demonstrations or accelerated virus spread, so the Fed's loose financial policy will not help offset the second wave of worry. However, Treasury Secretary Steven Mnuchin indicated that once the epidemic breaks out again, the United States will not stop its economic activities, pointing to the greater impact of this move. In addition to the severe economic downturn, it also causes medical problems.
The Dow fell more than 1,100 points at noon, hitting the worst airline and retail stocks since April
[US stocks open] Boeing fell by more than 1,000 points in the middle of the Dow, Boeing fell 10%, aviation stocks fell
US experts: good times will not last long, US stocks will be sold in the summer
The three major US stock index futures fell by more than 800 points.
U.S. stocks U.S. stocks Mnuchin U.S. Federal Reserve Board U.S. economy