Wall Street slumped on concern that a resurgence in coronavirus cases will derail the comeback for the world's biggest economy.
Financial companies were among the worst performers on the S&P 500 Index as Wells Fargo & Co. prepared to cut thousands of jobs because of the pandemic. The Dow Jones Industrial Average's loss exceeded 1.3 per cent as Boeing Co. dropped. The Nasdaq gauges advanced as big tech stocks rose.The S&P 500 closed 0.6 per cent lower, the Dow Jones tumbled by 1.4 per cent and the Nasdaq added 0.5 per cent. It sets up the Australian sharemarket for losses this morning, with futures at 6.
Long-term government bonds rallied following an auction for 30-year securities that showed strong demand.Analysts are closely monitoring the spread of the coronavirus in the US and across the world, with record deaths in Florida and California seen as ominous signs. While optimists are betting that fiscal and monetary support will contain the fallout and cited jobs data on Thursday that came in better than expected, others pointed out that the labour market is still treacherous.
"Sentiment clearly took a turn negative today, and the buildup of COVID-19 concerns seems to be the biggest issue," said Larry Milstein, senior managing director of government debt trading at R.W. Pressprich & Co. Given that cases are also rising in Asia, "there's a real concern that a second wave is approaching that will impact the global economy."
Elsewhere, European shares joined the decline. Gold traded near $US1,800 an ounce. West Texas oil slumped after swelling US crude stockpiles raised fresh concerns about oversupply and a key Libyan field resumed production. Chinese equities outperformed as the Shanghai Composite notched an eighth day of gains, helped by signals of official support and strong demand from retail traders.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
A trip down Main Road: How coronavirus affected one bustling streetSignalling the start of Hobart's northern suburbs, Main Road winds its way from an unassuming rivulet into a vibrant hub of cafes and shops. Here's now it fared during coronavirus.
Read more »
Nasdaq falls from record high as COVID-19 cases mount, ASX to slideAustralian shares are set to drop as global markets hit the 'pause button', while the EU economy may suffer a worse-than-expected contraction.
Read more »
Victoria records 134 new virus casesBREAKING: Victoria has confirmed 134 news cases of coronavirus as Melbourne is placed into lockdown.
Read more »
Kyrgios fires back at foe's 'nonsense' blastNick Kyrgios has been calling out bad behaviour mid-pandemic. Dominic Thiem couldn't cop it and also offered a bizarre take on a fellow star's appearance at a party.
Read more »
WHO sets up panel to review handling of COVID-19 pandemicThe announcement follows strong criticism by U.S. President Donald Trump's administration, which accused the WHO of being 'China-centric.'
Read more »
Indonesia surges past 2000 daily cases as coronavirus takes holdIndonesia has recorded more than 2000 cases of coronavirus in a day for the first time and infection rates are rising rapidly.
Read more »