New York, July 11(Reuters)-Wall Street plummeted on Thursday, as investors respond to new fears of a pandemic recovery and digestion of the harsh economic forecasts are available from the Federal Reserve of.
All three major U.S. stock indexes fell about 5%, posting their worst day since mid-March, when markets were sent into free fall to a sharp economic blockade to contain the epidemic. The NASDAQ snapped a three-day streak of record closing high.
Sell is extensive, all 11 major sectors of the S&P500 index declined 3% or more.
“Really did not buy point,”said Paul Nolte, portfolio management at Kingsview Asset Management in Chicago. “A lot of sales all the way through.”
Tim Ghriskey, the chief investment strategist at Inverness Counsel in New York, agreed.
“Everything is for sale,”Ghriskey added. “There is no fear we are near a top.”
Deaths of Americans from COVID-19 may reach 200 000 a month, a grim result of the US economy to re-open before the growth of new cases down to manageable levels, according to leading health experts.
At the end of the two-day monetary policy meeting on Wednesday, the Federal Reserve Board issued its first pandemic period of economic prospects after its Chairman, Jerome Powell warned of a”long road”to recovery.
“Fed to remain stable through 2022 may give investors the impression that the Fed may be more concerned about the pace of economic recovery than initially expected,”says Joseph Sroka, chief investment officer at NovaPoint in Atlanta.
Economic data occurs when the back of pessimistic economic forecasts, jobless claims still over their bimodal during the Great Depression and sustained the claim in a surprisingly high 20. 9 million dollars.
A decline in core producer prices was also reflected in the Central Bank’s inflation concerns.
Unofficially, the Dow Jones Industrial Average fell 6. 88% of the end at 25,132.25 points, while the S&P500 lost 5. 87%, the 3-002 a. 97.
The NASDAQ Composite dropped 5. 19%, reaching 9,500. 39.
Interest rate sensitive banks fell after the Federal Reserve pointed out that key interest rates will remain near zero through at least 2022.
Travel-related companies, one of the most serious of the authorization of the lock, are substantially reduced.
Boeing weighed heavy track after it’s top supplier of spirit, HX SA holding company announced a 21-day layoff staff to do the production and support work for the Boeing 737 program.
(Reporting by Stephen Culp;Additional reporting by Sinead Carew; Editing by Cynthia Osterman)
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