US Stocks Further Down as Trump Fails
US stocks dropped to almost a maximum limit due to public disappointment on Trump’s stimulus measures. Moreover, Trump’s announcement of a 30-day travel ban from Europe scared investors.
Investors were disappointed over Trump’s failure to take major steps to ease economic strains as promised last week. The lack of details about the provision of testing troubles everyone as the virus is already spreading.
S&P 500 futures dropped to as much as 4.7% to 2,610 points, near the overnight down limit of 2,601. They pared some losses in Asia but were still at 3.8% in the red.
Andy Wong, multi-asset senior investment manager at Pictet Asset Management in Hongkong, said proper leadership has been sorely lacking. The focus should be on appropriate measures and planning for the worst, rather than focusing on optics.
Should US Stock Investors Blame Trump’s Leadership?
The markets doubt Trump’s address on virus response, from testing to helping small businesses. Cliff Tan of MUFG Hongkong said the market was looking for something with a much better design.
What they saw in the last three days was like brainstorming, which is too haphazard, too little and too late.
The spread of the coronavirus has already impacted business activities and stock trading in major economies. Stocks are expected to fall, and Trump laid out reality as it is, in proportion to the true status of things.
His address came after the bull run had come to a stop on the Dow Jones index Wednesday, tipping into bear market territory. Asian markets were also dropping as COVID-19 spread widens.
US stock futures plummeted after he announced a suspension of travel from more than two dozen European countries to the US.
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More Stats on the Stock Market
Among US stocks indices, the Dow lost nearly 6% on Wednesday and is off 20.3% since its record high on Feb. 12.
Blue-chip stocks such as Boeing and ExxonMobil are down 40% for the year so far. The S&P 500 is down 19.2% since Feb. 19.
Currently, DOW futures have dropped more than 1,000 points or 4.3%. Furthermore, S&P 500 futures are down at 4.1% and Nasdaq futures are down at 4.2%.
Europe’s stock markets plummeted with London’s FTSE 100 dropping 5%, Germany’s DAX down at 5.4% and France’s CAC 40 at 4.5%. Italy’s benchmark stock index fell another 5.9% following its previous fall of 18% this week.
Markets in Asia moved sharply lower in the wake of Trump’s announcement.
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