Wall Street is opening distinctly lower, driven by financial stocks following a report claiming banks were benefiting from illegal dealings with criminal networks and disreputable people. JPMorgan fell 3.3%, Deutsche Bank is also down 7.6%.
With the new restriction taking place in Europe due to the rise in coronavirus cases is affecting the stocks and especially the travel sector. In the United States, daily coronavirus cases are again on the rise, for which all the progress towards the spread, the economy has gone for a toss.
On September 21 afternoon trading, the S&P 500 fell 71 points, or 2.1%, to 2,347 while the Dow declined 773 points, or 2.8%, to 26,885. The tech-heavy Nasdaq lost 137 points or 1.3%.
Investors were alarmed by the allegations made on the banks such as JPMorgan and Deutsche Bank that they have transferred money for suspected criminals.
The economy is facing headwinds as the pandemic continues to spread again. Millions of people are out of a job, and businesses are suffering to cope with no insights about the future.
The travel stocks are hit incredibly hard after the news of European countries are going to impose strict restrictions because of the increase in COVID-19 cases in the countries, especially in Britain. The current wave of the coronavirus jeopardises the economic outlook.
Besides, the positive cases in the U.S. are over 40,000 per day as of now. American Airlines sank 5.5% in early trading, while United Airlines plunged 8%.
Market momentum has decreased with growth in coronavirus cases, and later the Federal Reserve announced closing week that the U.S. economic forecast is unpredictable. U.S. lawmakers also have still to accept a new aid package before the polls for senate seats, Congress and of course the president. Jingyi Pan of IG said in a report that there is hope with the U.S. election that is going to happen in 43 days in terms of fiscal incentive.