Last week, the indexes of S&P 500 as well as Dow Jones slumped as investor expect to face “a second wave of coronavirus infections” as many of the countries decide to reopen their economy. In fact, Germany as well as South Korea also reported new cases of COVID-19 just last week, whereby casting ominous sign as various countries begin to lift lockdowns. As the “portfolio manager of the Sparrow Growth Fund in St. Louis, Missouri”, Gerald Sparrow put it:
“That’s going to put water on the fire today”.
“(Still), the difference now than four months ago is that governments and health organizations have more specific plans. The big tipping point is going to be if we can’t come up with a medicine to treat the virus.”
The brunt of the economic blow came on the travel and hospitality sector, which saw various indexes collapsing lately. Moreover, analysts see another selloff as “macroeconomic data gets worse” which could very well lead into global recession. The Head of Investment at Federated Hermes, Eoin Murray said:
“We think it’s likely a stretch for investors to chase the move much higher from here”.
In fact, ten out of the eleven “major S&P sectors” were on the decline especially indicating “financials weighing” which usually “tend to lag when economic outlook darkens”. However, Reuters also reported:
“Drug distributor Cardinal Health Inc jumped 6.9% as the pandemic drove a surge in third-quarter sales, which topped market estimates”.
Nevertheless, the number of declines have outnumbered the advances made recently on the NYSE while matching the advancers on Nasdaq and S&P index.
References:
reuters.com
“That’s going to put water on the fire today”.
“(Still), the difference now than four months ago is that governments and health organizations have more specific plans. The big tipping point is going to be if we can’t come up with a medicine to treat the virus.”
The brunt of the economic blow came on the travel and hospitality sector, which saw various indexes collapsing lately. Moreover, analysts see another selloff as “macroeconomic data gets worse” which could very well lead into global recession. The Head of Investment at Federated Hermes, Eoin Murray said:
“We think it’s likely a stretch for investors to chase the move much higher from here”.
In fact, ten out of the eleven “major S&P sectors” were on the decline especially indicating “financials weighing” which usually “tend to lag when economic outlook darkens”. However, Reuters also reported:
“Drug distributor Cardinal Health Inc jumped 6.9% as the pandemic drove a surge in third-quarter sales, which topped market estimates”.
Nevertheless, the number of declines have outnumbered the advances made recently on the NYSE while matching the advancers on Nasdaq and S&P index.
References:
reuters.com
