Stock Markets Traded in the Red on Tuesday. Why’s That?
Stock markets tumbled down on Tuesday as Covid-19 infections surged across U.S. states, triggering concerns of more restrictions. The Sterling plunged low as Britain agreed on further talks with the European Commission about a Brexit deal.
In the U.S., the S&P 500 plummeted down from an all-time high, led by energy, financial and real-estate companies. Apple Inc. is planning to release a series of new Mac processors as early as 2021. That new caused Intel Corp. to tumbled. Interactive Brokers Group Inc. also plunged after announcing that it experienced a significant failure across lots of parts of its data-storage system.
On the other side, the Nasdaq 100 skyrocketed for a ninth straight day. The index is on its longest winning streak in almost a year. Airbnb Inc. increased the price range of its initial public offering, while Boeing Co. soared as UBS Group AG advised buying shares of the plane maker.
Overall, the S&P 500 plummeted down 0.2% on Tuesday, while the Stoxx Europe 600 Index dropped down by 0.3%, and the MSCI Asia Pacific Index lowered by 0.2%.
The United States is now averaging approximately as many deaths per day from coronavirus as it was in April. Several large states, including New York, California, and Pennsylvania, face alarming upward momentum in hospitalizations.
Governor Andrew Cuomo noted that indoor dining in New York City would close. Particularly, if the regional hospitalization rate doesn’t stabilize after five days. Meanwhile, the government’s top infectious-disease expert, Anthony Fauci, cautioned that the Christmas season could be worse than Thanksgiving for boosting the spread of the virus.
Investors expect new stimulus deal
Stock markets are expecting a new stimulus deal as coronavirus cases rise, especially after last week’s disappointing jobless data. However, Republican and Democratic negotiators are struggling to reach an agreement on both a government spending bill and coronavirus relief. It seems, lawmakers plan to postpone a Friday night deadline for passing a bill.
Bryce Doty, the portfolio manager at Sit Fixed Income Advisors, stated that the market is basically assuming that it gets done. Any setback makes the stock market vulnerable as its built-in that they will pass it.
U.K. Prime Minister Boris Johnson plans to travel to Brussels for Brexit talks with European Commission President Ursula von der Leyen. They aim to break the deadlocked negotiations over a post-Brexit trade deal. The two already spoke on Monday amid British officials’ warnings that the talks could collapse unless negotiators make a fast breakthrough.
