Wall Street sank into the red on Thursday, experiencing its worst session since its plunge in March, in a market overtaken by uncertainty on the economic and health front in the United States.
The US stock markets were heckled on Thursday. The Dow Jones, Nasdaq and Standard & Poor’s 500 are simply having their worst session since March.
A new dip that comes after the Fed announced Wednesday the cut in its interest rates between 0% and 0.25% until 2022 and forecasts reporting a fall of 6.5% of GDP this year in the USA.
President Donald Trump has returned to his criticisms of the Fed, which forecasts a drop in American gross domestic product of 6.5% in 2020 before a rebound of 5% next year.
“The Federal Reserve is so often wrong. (…) We will have a very good third quarter, an excellent fourth quarter and one of our best years in 2021“the American president tweeted on Thursday.
The second reason for Thursday’s stock market crash, according to Karl Haeling, head of market strategy for LBBW, “is that the market has decided to take an interest in the increase in cases of contamination by coronavirus outside the northeast of the United States“.
While the United States now has more than 113,000 pandemic-related deaths and more than 2 million people infected, Texas and North Carolina have more Covid-19 patients hospitalized than a month ago. Arizona is also showing worrying signs.
European stock markets also unscrewed by more than 4% on Thursday: Paris (-4.71%), Frankfurt (-4.47%), London (-3.99%), Milan (-4.81%) and Madrid (-5.04%). Eurostoxx lost 4.27%.
A decline which also reflects strong concerns about the economic recovery after the coronavirus pandemic and the risks of the second wave.
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