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– This mutation gives a new fear of harder closures and that it will be more difficult to get rid of the virus. Normally, the agreement on a support package in the US would have given a raise, but it has probably been included in the market price for a while, says the chief strategist of Wealth Management at Nordea, Erik Bruce to DN.
On Sunday, several countries decided to stop flights to and from the UK. Norway followed after Monday morning.
Everyone now fears that the new mutational variant of the coronavirus, which was discovered in the UK over the weekend, could spread further. It has already been discovered in several other countries, such as Denmark, the Netherlands, and Italy.
The mutated virus variant is estimated to be 70 percent more contagious than the original virus.
During the trading day, the stock market crash was moderate and Wall Street finished only slightly worse than at the open. The news on Monday night that the EU urgently approved the Pfizer and Biontech vaccine may have contributed to this.
Among other news that characterized the stock market was Tesla’s debut day on the S&P index. It ended with a 6.5 percent drop on Tesla’s first day of the index stock, helping the S&P index lower.
How the US stock markets closed:
- The Dow Jones opened about one percent down, but turned positive and closed fairly flat, 0.12 percent higher than at the stock market open.
- The Nasdaq Composite Technology Index initially fell about 1.5 percent, but reversed. The country is also flat, 0.1% lower than the opening of the stock market.
- The S&P 500 fell above 1.6 percent first. When the stock exchanges closed, the index had fallen 0.39 percent since the exchange opened.
“There was indeed a lot of encouraging news this morning, even though it has been overshadowed by gloomy headlines from the UK,” Adam Crisfulli wrote on Vital Knowledge in a note to his clients Monday, according to CNBC.
– The market has been characterized by a tug-of-war lately, with high infection rates on the one hand and growing hopeful prospects brought on by vaccines on the other. But sometimes the market decides to focus on the first, and then the result is that stocks have to suffer, he adds.
Finally on the objectives of the crisis package
The second crisis package in the United States during the corona pandemic was ready Monday night.
Congress is now negotiating a crisis package for the US economy of about $ 900 billion (approximately $ 7.73 billion), the first crisis package since March 27.
The package means, among other things, that most Americans receive a one-time payment of $ 600. The unemployed will receive an additional $ 300 per week for the next ten weeks.
Under the package, the business community will receive $ 300 billion in crisis aid.
Negotiations have dragged on and last Friday a federal government in the United States was about to close because Democrats and Republicans did not agree on a crisis and funding package for the state.
An urgent vote in Congress on Friday provided the state with an additional two days of funding and more time for politicians to agree on the package.
House Democratic Majority Leader Nancy Pelosi writes in a letter to her party colleagues that the package is a first step and that more help will come when Joe Biden takes office in a month.
Tech boom in luxury in 2020
With just two weeks of trading in 2020, the S&P 500 is up 14.8 percent this year, while the Dow Jones is up 5.8 percent. The high-tech Nasdaq Composite has risen as much as 42.2 percent, while investors have pushed tech stocks and other so-called “stay-at-home” stocks in this pandemic year.
Aviation and other tourism-related stocks are among the stocks expected to drop on Monday as there is now more talk of closed borders and lockdowns to guard against the mutated virus.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content can only be done with written permission or as permitted by law. For more terms, see here.
