Wall Street closed at the close of the week with the Nasdaq setting a new record – amid a resurgence of concerns that a new rise in US and international coronavirus cases could hit economic recovery again. .
Especially on the dashboard, the Dow Jones industrial average lost 268.97 points or 0.75% and closed at 35,601.98 points, while the wider S&P 500, despite trying to move higher earlier, finally closed at 4,697.60 points, recording a fall of 0.19% or 9.04 points. On the contrary, the technological Nasdaq added 0.40% or 63.7 points to 16,057.40 points, setting a new – 46th in 2021 – record.
On a weekly basis, the Dow Jones fell 1.4%, recording the second consecutive week of losses. At the same time, the Nasdaq added 1.2% and the S&P 500 strengthened by 0.3%.
Of the 30 Dow shares, 7 closed in the “green” and the rest recorded losses. In particular, the shares of Nike, Apple and Amgen led the gains with an increase of 2.06%, 1.70% and 1.01% respectively. On the other hand, the shares of Boeing, Merck & Co. led the losses. and Travelers Cos. Inc. with a decrease of 5.77%, 2.83% and 2.24% respectively.
The climate in the US stock market, however, is heavy, as the new “resurgence” of cases in the country and especially the decision of Austria to proceed with a total lockdown for 20 days and the “threat” of Germany that it may proceed to similar meters, brought back to the fore the unpleasant memories of the previous year with the lockdowns in many countries that led to recession several economies and caused problems in the supply chains which have not yet been fully restored.
It is noted that Austria announced that from Monday it will impose a total, national lockdown and thus becomes the first country in the European Union to take such measures again to deal with the coronavirus pandemic.
At the same time, Germany announced that the new wave of cases sweeping the country has worsened and declared a state of emergency, with the Minister of Health leaving a window open even for a lockdown. After the closure of the famous open-air Christmas Market in Munich, it was the turn of the open-air Christmas Market in Bavaria today, due to the increase in the number of coronavirus cases.
In the US, meanwhile, cases are rising in the upper Midwest as the Thanksgiving holiday season begins next week, with the daily number of cases exceeding 100,000 for a second day and the seven-day average climbing at a six-week high, according to the New York Times Tracker.
The news has also worried US market investors, raising fears that possible new restrictions, along with a reduction in the Fed’s emergency asset trading program, could undermine growth.
Fed Vice President Richard Clarida said today that the Federal Reserve had already considered at its next meeting in December the increase in the rate of decline in asset purchases, which began earlier this month.
“I will carefully consider the data we are receiving from now until the December meeting, and it may be appropriate at that meeting to discuss increasing the rate at which we are reducing our balance sheets,” the Fed vice president said.
Earlier in November, the Fed began cutting $ 120 billion in monthly asset purchases as part of an emergency plan it launched last spring to support the US economy amid a pandemic rate of $ 15 billion a month. by 10 billion in the monthly bond purchases of 80 billion and by 5 billion in the purchases of mortgages ($ 40 billion), with the aim of ending the extraordinary program in the middle of 2022.