Investors on the Run: Dark Business Assessment: Dow Jones Gives Up Massively Until End of Trading | message

—A gloomy economic assessment by the US Federal Reserve (Fed) and the fear of a second wave of corona drove investors away: The Dow Jones started trading at a discount and then moved further and further into red territory. To sound the closing bell, the stock market barometer was down 6.88 percent at 25,133.97 points.

This time, the technology-heavy Nasdaq also tended to fall after its indices closed against the trend the previous day. The trigger for the gloomy mood on the stock exchanges in Asia and Europe was the statements made by the US Federal Reserve the previous day, which put the “V-shaped” recovery of the economy that had previously been played on the markets far away.

Fed head Jerome Powell said the corona pandemic would cause long-term economic damage due to changes in consumer and corporate behavior. The rationale for the current upswing on the stock markets has become shaky, even if the excess liquidity will probably find its way there in the future.

Added to this was concern about a “second wave” of corona infections, the number of which is currently increasing in several US states, including Florida, Texas and California. Meanwhile, the total number of infected people in the United States is over two million, and the number of those who have died is 111,000.

Weekly data on the labor market was published pre-exchange, which turned out to be slightly better than feared. Producer prices rose, while experts had expected the situation to remain unchanged.

Editorial office finanzen.net / Dow Jones Newswires / dpa-AFX

Image sources: Frontpage / Shutterstock.com, spirit of america / Shutterstock.com

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