Investors have lost nearly $ 1.7 trillion this week as the stock market plunged amid new concerns aboutcontagion and pre-election restlessness in America
The Commerce Department reported Thursday that the nation’s gross domestic producteven though economic growth has recovered only two-thirds of the operations lost since COVID-19 broke out in March.
The Dow Jones industrial average slipped 500 points on Friday before pausing those losses to close 0.6%, or 158 points, at 26,502. The S&P 500 fell 1.2 percent and the tech-heavy Nasdaq fell 2.4 percent.
For the whole October, the Dow fell nearly 6%, or 1,600, marking the biggest monthly drop since March. The S&P 500 is down 3.5% for the month.
Investors are also concerned that some of the best-performing stocks, especially in the tech sector, are falling high after soaring in recent months. That has piled up concerns about potential economic damage due to soaring coronavirus numbers around the world, Washington’s inability to provide emergency relief to Americans short of money, and uncertainty surrounding elections. upcoming presidential election.
“Today, you have investors taking profits on technology stocks they expect to do well in Q3,” said Sam Stovall, investment strategist at CFRA. “And now the focus is again on COVID-19, and investors only sell before the end of the week.”
The United States reported nearly 89,000 new COVID-19 cases on Thursday – a new one-day high during the pandemic. While,The rise in stock prices in September and early October was partly due to the expectation that Joe Biden would take over the White House and possibly a Democratic wipe out of Congress.
“[A]Oliver Jones, senior market economist at Capital Economics, said the risk of coronavirus outbreaks in the US and elsewhere remains the most important factor by far remains the most important factor setting the stage. It was proved once again by the stock market’s sharp slump this week, which seems to be mainly related to concerns about a new rise in the stock market. virus cases in the US and especially in Europe. “
Much of the market’s focus on Friday is. They are four of the five largest stocks in the S&P 500 by market value, helping their volatility to fluctuate strongly on the index, and they have helped fuel Wall Street’s massive rally since March.
Although the four tech giants this week reported quarterly returns to top analysts’ forecasts, investors have found reason for concern. Apple fell 6% after investors worried about weaker iPhone revenue and sales in China. Amazon fell 5.5% and Facebook lost 6.7%.
Twitter, another popular technology stock, fell 20.6% on Friday, the biggest drop among stocks in the S&P 500. It also reported better-than-expected earnings in the most recent quarter, but the Investor focused on disappointing growth in daily user base. .
Alphabet, the parent company of Google is a larger company and rose 4.4% after reporting an increase in spending on digital advertising.
Additional reporting provided by Associated Press.