U.S. stocks closed sharply lower on Wednesday, the worst day in nearly two weeks,media reported. Concerns are raised about the prospect of a rapid recovery in the U.S. economy and a global recession is expected to be deeper than initially expected amid a surge in confirmed cases of new u.S. pneumonia in multiple states.
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The Dow fell 710.16 points, or 2.7 per cent, to 25,445.94, its biggest one-day gain since June 11, and all of this week’s gains; the Standard and Poor’s 500 index closed at 3,050.33. The index, down 2.6 per cent, was also the biggest one-day drop since June 11, after two straight days of gains, while the tech-heavy Nasdaq Composite Index closed down 2.2 per cent at 9,909.17, ending an eight-day rally.
In Wednesday trading, tech leaders fell, with Apple down 1.77 percent at $360.06, Google parent Alphabet down 2.22 percent at $1,431.97, Amazon down 1.09 percent at $2,734.40, Microsoft down 2.02 percent at $197.84 and Facebook at $234.02, 3.39 percent. Oracle closed down 1.36 per cent at $54.44, IBM fell 2.50 per cent to $116.42, Netflix fell 1.80 per cent to $457.85, Tesla fell 4.09 per cent to $960.85, Twitter lost 3.59 per cent and Uber fell 7.84 per cent and Lyft fell 7.88 per cent.
Chip leading U.S. stocks fell, with Intel closing down 1.39 per cent at $59.09, Nvitech down 2.27 per cent at $369.42, Broadcom down 1.39 per cent at $306.97 and Texas Instruments closing at 1 $23.99, down 2.08 per cent, Qualcomm fell 0.24 per cent to $89.14, AMD fell 2.96 per cent to $52.39, Micron Technologies fell 3.11 per cent and Applied Materials fell 1.43 per cent.
Most of the major U.S.-listed stocks fell, with Alibaba down 1.11% at $226.22, JD.com down 0.13% at $59.84 and Baidu down 1.5 cents to $121.37 9;P Duo Duo, up 1.03 per cent at $US84.50, down 1.37 per cent at $US44.03 and Good Future down 0.07 per cent at $US67.55 Aichi, down 3.49 per cent at $22.92, Orion, down 3.08 per cent at $56.70, Weibo, down 3.57 per cent at $32.96, and Sina, up 1.73 per cent; and Sohu, Soufan fell 6.82 per cent, Sogou fell 7.01 per cent, Ctrip fell 3.22 per cent, Car House fell 6.49 per cent, 58 Tongcheng fell 0.06 per cent and NIO fell 5.12 per cent.
Jinshan Cloud closed down 13.38 per cent at $26.67, up 14.97 per cent in the previous session, while Luckin Coffee closed up 14.72 per cent at $3.14 and 12.26 per cent in the previous session.
The number of new confirmed cases of new U.S. pneumonia surged to its highest level in two months after a six-week downward trend, unnerving investors. While cases have steadily decreased in states such as New York and New Jersey, the virus has been hitting the southern and western United States. Several states, including Arizona, California, Mississippi, Nevada and Texas, recorded new cases in a single day on Tuesday.
“It’s a highly emotional market, but we haven’t seen panic selling like the one in March, ” analysts said. The surge in cases of new crown pneumonia has alarmed people. Transparency is minimal as to when the global recession will end. “