Dow Jones down 4% as investors take profits amid rising US Covid-19 cases
The Dow Jones Industrial Average tumbled 4% in early morning trading on Friday, with investors opting to take profits amid rising Covid-19 cases.
The Dow Jones Industrial Average tumbled 4% in early morning trading on Friday, with investors opting to take profits amid rising Covid-19 cases.
The Dow Jones slipped more than 300 points on Friday morning, with profit taking likely to erase a proportion of this week’s gains. It will be interesting to see how US equities fair next week without any further relief fuelling the financial markets.
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Dow Jones rallies 20% after stimulus package
The Dow Jones has rebounded 20% since Monday after US politicians passed a $2.2 trillion emergency relief package aimed at limiting the economic impact of the Covid-19 pandemic – the deal is the largest of its kind in American history.
‘This is a strange and evil disease,’ Senate minority leader, Chuck Schumer, said ahead of the vote. ‘When we pass this bill, instead of hugging each other, we’ll wave from a distance.’
The Dow Jones has gained more than 4000 point since Tuesday – its largest three-day surge since 1931.
You can go long or short the Dow Jones and other major indices with IG using derivatives like CFDs and spread bets.
European equities recovery comes to an end
On the other side of the Atlantic, European equities are also likely to end the week on a sour note after a four-day surge spurred by government stimulus packages.
The FTSE 100 climbed 17% since Monday to close at 5815 on Thursday. However, the blue-chip index is down 6% on Friday after sliding more than 350 points, as investors around the world take profits as Covid-19 cases rise.
In Germany, the DAX is down 3%, while the French benchmark, the CAC 40 is down 4%, eating into the near 15% gains both indexes saw over the past four trading sessions.
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