The U.S. stock market dropped sharply yesterday amid concerns over the latest surge in COVID-19 cases and its impact on the global economy. The Dow Jones fell 943 points to 26,520, or 4 percent, in its fourth consecutive negative session. The Nasdaq Composite fell 3.7 percent, while the S&P 500 fell 3.5 percent. Will the stock market crash again in 2020?
Is the stock market crashing?
Yesterday, the S&P 500 and the Dow Jones suffered their worst day since June 11. The surge in coronavirus infections has triggered a sell-off in stock markets. According to data compiled by Johns Hopkins University, coronavirus infections in the U.S. have surged by a record daily average of 80,000 over the last week. Meanwhile, coronavirus-related hospitalizations are up by about 5 percent in three dozen states. Coronavirus cases are also rising quickly across Europe.
The recent surge in coronavirus cases has led certain countries to reinstate some social distancing measures. The stocks that would be most affected by lockdowns led the decline yesterday. United Airlines, Royal Caribbean, Norwegian Cruise Line, and Carnival stock fell 4.6, 7.4, 9.1, and 10.6 percent, respectively. Stimulus talks between Democrats and Republicans have stalled, creating even more pressure.
Stock market news today
Amazon, Alphabet, Apple, and Facebook, which all post earnings today, were up in premarket trading. U.S. gross domestic product data for the third quarter will likely be released at 8:30 a.m. ET. According to CNBC, “Economists surveyed by Dow Jones expect growth of 32% on an annualized basis, a huge comeback that still leaves the economy far below where it was before the coronavirus hit.”
What are Dow Jones futures at today?
Dow Jones Industrial Average futures were flat today after the worst day for the stock market in months. The Dow Jones Index was down 3.4 percent on Oct. 28 as coronavirus hospitalizations climbed.
What are U.S. stock market futures at today?
U.S. stock market futures rebounded today after the worst day for the markets in months. As of 7:33 a.m. ET, Dow Jones Industrial Average futures were up about 0.27 percent, while the S&P 500 was up about 0.41 percent. The tech-heavy Nasdaq 100 Index, which has done well amid the coronavirus pandemic, was up about 0.77 percent.
What is the VIX fear index?
The CBOE (Chicago Board Options Exchange) Volatility Index, or VIX, is the stock market’s best indicator of expected volatility in the next 30 days. The index surged above the 40 mark and touched its highest level since June 15.
Which are the best VIX ETFs?
The VIX has surged this year, rising about 33 percent during the last 12 months. According to Investopedia, the best VIX ETFs for the fourth quarter are the iPath S&P 500 Dynamic VIX (XVZ), iPath Series B S&P 500 VIX Mid-Term Futures (VXZ), and ProShares VIX Mid-Term Futures (VIXM).