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Airline and cruise stocks plummet due to Corona 19 reproliferation
Burden on the prospects of difficulties in legislating economic stimulus plans
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| The statue of the intrepid girl in front of the New York Stock Exchange [사진=로이터 뉴스핌] |
That day, the Dow Jones Industrial Average of the New York Stock Exchange (NYSE) closed at 27.7686.38, a sharp drop of 650.19 points (2.29%) compared to the previous trading day. The Dow index fell the highest since the beginning of last month. In addition, the Standard & Poor’s (S&P) 500 fell 64.42 points (1.86%) to 3400.97 and the Nasdaq fell 189.34 points (1.64%) to 11.1358.94.
On this day, the market closed with a fall of close to 3% during the intraday, with a fall of close to 3% during the week due to the reproliferation of Corona 19 and the news of additional measures of economic stimulus.
Currently, the market is frozen in investor sentiment due to the reproliferation of Corona 19. This is because major European countries, such as the United States, Russia and France, are breaking daily highs for corona infection19. In the United States, the situation is rapidly deteriorating, including the number of new corona-confirmed patients19 surpassing 80,000 on Friday. Additionally, the number of Americans hospitalized for Corona 19 was the highest in two months, and the average number of new confirmed cases on Day 7 rose to an all-time high the day before.
Consequently, airlines and cruise stocks that are vulnerable to Corona 19 have dropped significantly. Delta and American Airlines fell more than 6%. In addition, the cruise operator Royal Caribbean plunged 9.65%.
Furthermore, the prospect that it would be difficult to legislate the Corona 19 stimulus package before next month’s presidential elections was onerous. Expectations for the passage of additional stimulus laws that have supported the market until last week have deteriorated significantly over the weekend. White House National Economy Commissioner Larry Kurdlow said the day that “there are many parts of the stimulus package proposed by the Democratic Party that President Donald Trump cannot accept.”
Michael Aaron, chief investment strategist at State Street Global Advisor in Boston, said: “Fears of Corona 19 reproliferation have risen and investors were uncomfortable that the Republican and Democratic fiscal policy package negotiations did not go smoothly.” . This is the main reason for the fall. “
Consequently, the volatility index (VIX) of the Chicago Options Exchange (CBOE) in the US also reached the highest level in seven weeks. On the Chicago Options Exchange (CBOE), the volatility index (VIX) was up 17.82% from the previous trading day to 32.46. This is because uncertainty about the presidential elections is growing, Reuters analyzed.
Investors are also paying attention to results from Apple, Amazon, Google and Facebook ahead of the third quarter results release on the 29th (local time) this week. According to Refinitiv data, 83.5% of the 139 S&P 500 companies that have reported earnings so far have exceeded Wall Street expectations.
