Dow falls 270 points as investors mull spiking virus cases

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US stocks fell Friday amid spiking coronavirus cases that are threatening to slow economic reopenings nationwide.
Bank stocks slumped after the Federal Reserve said on Thursday that it will limit stock buybacks and cap dividends.
The decline comes amid data showing that US consumer spending jumped a record in May even as personal incomes fell.
on Business Insider.

US stocks fell Friday as investors continued to watch spiking coronavirus cases that are threatening economic-reopening efforts nationide.

Bank stocks led losses after the Federal Reserve on Thursday said it will limit stock buybacks and cap dividends. The decision is part of an effort to boost capital of big banks in order to guard against further shocks stemming from the coronavirus pandemic.

Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Friday:

S&P 500: 3,063.09, down 0.7%
Dow Jones industrial average: 25,479.26, down 1% (266 points)
Nasdaq composite: 9,948.44, down 0.7%

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Investors have been closely watching new coronavirus cases that could throw of state reopenings across the US and are sparking fears of a second wave. On Thursday, Texas and Florida paused reopening plans following an uptick in cases.

Still, markets have largely shrugged off the climbing cases as some data shows positive signals. On Friday, US consumer spending jumped a record 8.2% in May, while personal income declined.

Shares of Gap rallied spiked more than 30% on Friday following an announcement that the company reached a deal with Kanye West to create a line of “Yeezy” apparel.

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In an online conference Friday, ECB president Christine Lagarde said that while the worst of the coronavirus crisis may be over, the recovery will be “sequential and restrained” and could be transformational for some industries.

Oil prices slid. West Texas intermediate crude oil fell as much as 1.6%, to $39.35 per barrel. Brent crude, the international benchmark, slipped 0.8%, to $40.73 per barrel, at intraday lows.

Volumes may be higher than usual later on Friday as the Russell indexes undergo their annual rebalancing.

Read more: Aram Green has crushed 99% of his stock-picking peers over the last 5 years. He details his approach for finding hidden gems — and shares 6 underappreciated stocks poised to dominate in the future.

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Source:: Business Insider


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