Stocks are falling as cases of Covid-19 cases mount up around the globe, U.S. claims for unemployment benefits increase, and hope for government aid to prop up the economy fades.
Initial claims for unemployment benefits were higher than expected for the latest week. That’s a concern, especially as U.S. lawmakers appear no nearer to another round of government aid, even as coronavirus cases continue to rise in the U.S. and Europe.
“It was only a matter of time before investors are no longer able to ignore the sharp increase in new Covid-19 cases and new restrictions being introduced throughout Europe,” wrote Milan Cutkovic, market analyst at Ax, saying a second European lockdown, which previously looked unlikely, can no longer be ruled out.
“So far it has mainly been the hope for new stimulus measures that has kept the optimism alive. On Wall Street, however, investors have now accepted that there will be no deal between the Republicans and Democrats over the stimulus package in the imminent future.”
Write to Teresa Rivas at firstname.lastname@example.org