Dow Falls Over 900 Points as Coronavirus Cases Surge and Lockdowns Loom

Marco Green
October 29, 2020

The Dow Jones Industrial Average slumped 3.4 per cent, or more than 940 points, to 26,519.95.

Wall Street stocks plunged on Wednesday on rising worries about coronavirus lockdowns as France and Germany announced tough new restrictions and USA cases continued to climb.

"Whether you call it a continuation of the pandemic or a third wave of new case discovery - it is the largest concern", said Art Hogan, chief market strategist at National Securities in NY.

The three major stock indexes ended the day's trading session down around 3% due to the widening pandemic and the failure to reach agreement on new fiscal stimulus before the November 3 elections.

"There is some renewed election uncertainty and there is an ample basis for buyers to keep to the sidelines, creating lower bids that have the potential to feed even lower prices", said analyst Patrick O'Hare. "The concern is about the impact this may have on fear levels - either amongst consumers or amongst policymakers".

Akamai Technologies Inc (AKAM: NASDAQ) and Unum Group (UNM: NYSE) shares are both down more than 9% as the other big losers on Wednesday. The Nasdaq Composite was down 224.75 points or 1.97% at 11,206.60.

Of the 170 S&P 500 companies that have reported third-quarter earnings so far, about 84% have topped expectations, according to Refinitiv data. But earnings on average are expected to fall 14.8% from a year earlier.

Shares of hotels, airlines and other companies sensitive to COVID-19-related curbs fell with Wynn Resorts down 3.6% and the S&P 1500 airlines index declining 3.4%.

Among companies reporting results, Boeing slid 4.6 per cent as it reported another quarterly loss and announced another additional job cuts.

The S&P index recorded one new 52-week high and eight new lows, while the Nasdaq recorded 15 new highs and 122 new lows.

Other reports by Click Lancashire

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