How major USA stock indexes fared Monday

Marco Green
October 27, 2020

Shares skidded in Asia on Tuesday after surging coronavirus cases and waning hopes for USA economic stimulus gave Wall Street its worst day in a month.

The S&P 500 was virtually unchanged in early trading after swinging between a loss of 0.1% and a gain of 0.2%.

Semiconductor designer Advanced Micro Devices Inc fell about 3%, as it agreed to buy Xilinx Inc in a US$35 billion all-stock deal that will intensify its battle with Intel Corp in the data centre chip market. They helped counterbalance losses for energy stocks and other areas of the market whose profits are closely tied to the strength of the economy.

The Dow Jones industrial average fell 650 points, or 2.3 percent, to 27,686. The one positive performer was the Nasdaq, which rose 0.09% to 11,369.

Still, caution continues to hang over markets.

On top of that, as the United States, France and Russian Federation had reported a record number of pandemic cases on Monday, fears over a forced lockdown measure ratchet up, while the Democratic US Presidential candidate Joe Biden, whose triumph would likely to lead to an abrupt doom in the US stocks, was quoted saying earlier in the day that the United States should brace for a painful winter full of disease, death and despair, eventually rattling the investors' nerves.

But momentum has slowed recently after a prior round of supplemental unemployment benefits and other stimulus that Congress approved earlier this year expired.

Reports on the economy released Thursday were mixed.

South Korea's relatively strong showing reflected a better than expected 1.9% economic growth in the last quarter, following a 3.2% quarterly decline in April-June. Consumer confidence also weakened a bit in October, when economists were expecting it to hold steady.

"The COVID-19 situation is worrying to investors because they are looking across the pond to Europe, where many countries are increasing stringency measures and implementing a variety of targeted lockdowns, and wondering if that is the future for the United States as well, " said Kristina Hooper, chief global market strategist at Invesco.

US House Speaker Nancy Pelosi on Sunday said the Trump administration was reviewing the latest proposal for COVID-19 relief over the weekend and that she expected a response on Monday.

Any compromise reached between House Democrats and the White House faces stiff resistance from Republicans in control of the Senate. Both contracts fell nearly 2.5% last week.

In European stock markets, France's CAC 40 fell 1.2%, and Germany's DAX lost 0.4%.

Australia's ASX 200 opened down about 0.6%, while Japan's Nikkei 225 futures were up 0.04%.

Other reports by Click Lancashire

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