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Home / Business / S&P 500 Index drops 120 points: COVID-19 cases surge, technology stocks return to the market

S&P 500 Index drops 120 points: COVID-19 cases surge, technology stocks return to the market



of S&P 500 Index (SNPINDEX: ^GSPC) October 28 fell by 3.5%, one of the worst days in a week and months, and the stock market is falling every day. So far this week, the 500 stock index, which represents approximately 80% of the US stock market value, has fallen by more than 5.6%.

Today’s sell-off is the product of the same thing that attracted investors in the past few days: the coronavirus resurrection. In the past 24 hours, the United States has reported more than 72,000 new cases of COVID-19, which marks the continuing trend of the past few weeks. The current seven-day moving average in the United States has reached the highest level since the beginning of the virus. Spread across the country. Overseas, Germany and France are taking measures to reduce the spread of the disease, and investors expect similar actions in certain US states.

Today̵

7;s brutal selling is particularly evident at the top of the index. apple (Nasdaq stock code: AAPL), Microsoft (Nasdaq stock code: MSFT), letter (Nasdaq stock code: GOOGL)(Nasdaq stock code: GOOG)with Facebook (Nasdaq stock code: FB) All stock prices fell by 5% or more.of Technology Featured Industry SPDR ETF (New: XLK) It fell by 4% and has fallen 12% since its peak in September, returning to the correction zone.

But before you think that today’s decline is just the big man at the top of the index, please think again: 491 of the 503 stocks fell today.

Automatic data processing (Nasdaq stock code: ADP) with General Electric (New York Stock Exchange: GE) These are the only two stocks that rose more than 4% today, and their earnings reports were enough to convince investors to buy their stocks on a very pessimistic day.

Traders are on the floor of the stock exchange.

Image source: Getty Images.

Coronavirus concerns, economic and political uncertainties make investors frightened

Today’s stock sell-off is largely a product of investor concerns about the impact of another wave of coronavirus, especially the potential economic impact of permanent orders returning to the global economy in March and April.

Today’s crude oil prices fell by more than 5%, causing West Texas Intermediate and Brent crude oil futures to both fall below $40 a barrel, erasing all (modest) gains during the summer peak demand season. Crude oil inventories are increasing, and global oil giants are adding more oil to the market. As uncertainty and oil patch risks increase, oil inventories have fallen further.

With the coming of the US election next week-Congress is in an adjournment, which means that the government will not take stimulus measures at work soon-there is a lot of bearish uncertainty in the narrative.

Technology stocks rebound

Today, technology stocks are down 4%, down 10% from their highs in early September. The S&P 500 index as a whole is not behind, falling 8.7% from its historical high. The largest large-cap stocks in the index have fallen more than the S&P overall index, while Apple and Microsoft have fallen the most:

^ SPX chart

^ SPX data by YCharts

Even the strong earnings from Microsoft are not enough to appease investors. The company reported revenues of $37 billion, an increase of 12%, and earnings per share increased by 32% to $1.82. The next few days will be interesting, because other large technology teams will report their latest quarterly results.

ADP and GE are the few highlights

General Electric released its financial report before the opening today. Revenue reached $19.4 billion, which exceeded expectations. Investors were surprised by losses. Earnings per share were $0.06, after deducting some non-cash expenses related to ongoing restructuring. Management stated that General Electric is smoothly carrying out the cost-cutting part of its restructuring, and has planned to cut costs by US$2 billion, which has reached approximately US$1.5 billion. In summary, GE has changed from a troubled state to “getting better,” but it still has a long way to go before it can return to normal. Between the ongoing challenges facing the end market (that is, trying to sell jet engines now) and the balance sheet that still needs work, CEO Larry Culp still has work to do.

ADP announced a 1% drop in revenue and a 3% drop in revenue increase In terms of income, they are relatively in line with expectations. What ADP makes investors happiest is its prospects, which now expect income to remain relatively stable-in the worst employment crisis in a decade, this is a real concern for payroll and human resource service companies-and income will do the same Things.




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