S&P 500 tumbles in worst rout in nearly two months

Marco Green
October 29, 2020

As of 14:16 IST, Dow Jones Industrial Average futures fell 467 points or 1.71 percent lower at 26,898, NASDAQ 100 futures lost 107.38 points or 0.93 percent at 11,480.62, and S&P 500 Futures fell 42.48 points or 1.26 percent at 3,340.62. That's when the market was in the midst of selling off as strict lockdowns around the world choked the economy into recession.

The S&P 500 slid 1.9 per cent, its worst day in more than a month, while the Nasdaq Composite dipped 1.6 per cent.

Shares of hotels, airlines and other companies sensitive to Covid-19-related curbs dropped with Wynn Resorts down 2 per cent and the S&P 1500 airlines index declining 3 per cent.

USA stocks tumbled on Wednesday, with the Dow closing at lows last seen in late July, as coronavirus cases soared globally and investors anxious about the possibility of a contested US presidential election next week. The declines followed a broad sell-off for stocks indexes in Europe, where the governments in France and Germany imposed new restrictions aimed at slowing the spread of the virus.

Wall Street main indexes slumped on Wednesday as a surge in coronavirus cases in the United States and Europe dashed hopes of a quick global economic recovery. Its shares, however, fell 2.6 per cent after rising 35 per cent so far this year.

Microsoft reported better-than-expected earnings and revenue for the previous quarter as sales from its cloud business grew sharply.

General Electric gained after reporting a surprise profit. Automatic Data Processing rose 6.6 percent after its profit report also topped expectations. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have continued their talks, but investors see little chance of a deal happening before Election Day next week.

"The uncertainty of not knowing the direction we are heading is making investors step on the sidelines and wait for the election results", Hogan said. Analysts are also warning about increased volatility in markets ahead of the presidential vote and in its aftermath, with some saying that a contested outcome is still a possibility. "I think that's not something people anticipated, I think most people expected it to flatten out". "There'll be no political motivation to hold it back after the election", he said.

Other reports by Click Lancashire

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