(((CBS New York) – The stock market is like a roller coaster ride. Unfortunately for many investors, Monday was mostly downhill. The Dow Jones ended the day at 33,873 and tumbled over 700 points after hitting a record high of over 35,000 last week. The S&P 500 was down about 1.6% while the Nasdaq Composite was down 1.1%. But why has the market fallen so much today?
This decrease is due to several factors. At the top of the list is the rise in delta variants of COVID, which are more dangerous and contagious than other strains. Vaccination at home It continues to rise at a rate of around 500,000 vaccinations per day. However, while 48.6% of the US population is vaccinated, the state percentage ranges from 66.9% in Vermont to 33.7% in Alabama. It is increasingly common in areas where few people are shot per person. Last week, new cases rose about 70%, with an increase in most states.
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The US economy is generally open, but there are concerns that it could change once the Delta variant takes hold. Other countries where vaccination is difficult have stricter restrictions. Japan, for example, only about 20 percent of its residents are fully vaccinated, despite being the third largest economy in the world. The upcoming Olympic Games will be played completely without the participation of domestic or foreign fans. Outbreaks are also generally increasing in Southeast Asia.
Because of this dense international economy, a virus outbreak in one part of the world can have far-reaching consequences. The domestic economy cannot grow further without the smooth flow of goods from around the world and the supply of goods to manufacture them. It’s all about the ongoing shipping delays that have secured products for months and the semiconductor issues that have ravaged the automaker’s production lines. The economic slowdown caused by COVID elsewhere will weaken the US economy.
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Another problem is reducing pandemic relief efforts at home. The fourth stimulus check is unlikely. The $ 300-a-week federal unemployment bonus is slated to expire on Labor Day, but 22 states have already stopped it. From March 2020, payments for federal student loans will be resumed this fall with administrative decision. Similarly, the Federal Reserve Board appears poised to ease support for the market later this year. Some experts wonder if the recovery can continue at its appalling pace without the help of the federal government.
The stock market loss was fully felt in trading on Monday. But companies in need of a strong rebound have suffered some of the biggest losses. United Airlines lost 6.2% and Carnival Cruise Line lost 5.6%. At the same time, US air travel remained strong and consumer spending rose. 0.6 percent in June, according to the Ministry of Commerce.
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The Dow Jones fell more than 10,000 points from more than 29,000 to just over 19,000 at the start of the pandemic. I’ve lost about a third of its value in that time. Dow then won everything back, and then some of the executions that lasted nearly 16 months. Concerns about Delta Variants and Delayed Recovery Will Execute?
Stock market plunges amid heightened fear of COVID delta variants – CBS Pittsburgh
Sourcelink stock market plunges amid heightened fear of COVID delta variants – CBS Pittsburgh
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