The U.S. stock market fell on Wednesday, as the coronavirus infection increased, which shook investors’ confidence in the global economic recovery and made them turn to the security of U.S. Treasuries and the U.S. dollar.
Futures linked to the Standard & Poor’s 500 Index fell 1.4%, indicating that the index will fall for the third consecutive trading day. The benchmark has fallen by more than 5% from its record closing price in early September.
Due to many uncertain factors, the market declined this week. The increasing number of coronavirus cases may lead to stricter restrictions in the United States and Europe, which may set back the fragile economic recovery. As U.S. states continue to report high levels of new infections, new U.S. cases have risen to more than 70,000.
Hugh Gimber, global market strategist at JP Morgan Asset Management, said: “A month ago, there were a lot of narratives in the market. The lock-in was limited and targeted, so the impact on the economy Smaller.”
Data compiled by Johns Hopkins University showed that 73,200 new cases were reported in the United States on Tuesday, the second consecutive day of increase.