The stock market experienced a huge plunge on Thursday, making it the “worst day fall for U.S. stocks since March 16”. The latest dip could be attributed to news reports of an increase in COVID-19 cases, which John Hopkins University reported surpassed 2 million over the last few weeks.
The S&P 500 dropped by 5.9% and Dow Jones Industrial Average saw a 6.89% decrease, falling 1,862 points.
The usually boisterous tech industry experienced an average of 5% decreases. Apple went down by 4.8%, Amazon by 3.4%, Google owner Alphabet by 4.29%, and Facebook and Microsoft both dropping 5%. The total market value lost is more than $269 billion.
The market had just saw hopeful increases amid what looked like a progressive opening of the U.S. economy.
“Markets started to bake in a very smooth economic reopening process, even while we continue to expect it to be positive but uneven,” wrote Keith Lerner, chief market strategist at SunTrust Advisory Services as reported by MarketWatch.
He continued, “Last Friday’s much-better-than-expected jobs report further lifted investor expectations, and with elevated expectations, bad news surrounding the coronavirus went a long way in hitting markets.”
Despite the rush to sell on Thursday, many investors suspect that the market will eventually bounce back. How long that will take is the question that holds several frightened investors captive.
