Coronavirus impact on the Stock Market: Jobless claims rise by a huge number, Dow Jones up by 500 points, Luckin Coffee crashes 80%

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The effect of the coronavirus outbreak has been concerning the global economy. The stock market has been facing huge blows thanks to the shutdown and virus outbreak all across the world. The Dow Jones Industrial Average although recovered slightly from its earlier losses and rose by 500 points by Thursday midday. The stock market correction continues as the rise of coronavirus cases in the U.S. went past 2,17,000, along with a rise in the US jobless claims.

The Dow Jones stock Microsoft rose by 2%, while Chevron gained 12% with the surging oil prices. Disney rose by 2% after an analyst upgrade while one of the Coronavirus stock leaders Zoom Video (ZM), along with Walgreens Boots Alliance both fell by 7% on Thursday. Luckin Coffee which was one of the top IPO stocks crashed by almost 81%after an investigation into reported fake sales numbers.

Dow Jones: As it stands today

The Dow Jones Industrial Average was not the only rise in the market on Thursday. The NASDAQ composite rose by 1.8% and the S&P 500 was up by 2.2% on Thursday midday, while the Dow Jones industrials gained about 2%.
Exchange-traded funds like Innovator IBD 50 (FFTY) rose by 1% on Thursday morning. The ETF of top growth stocks is still more than 25% off its 52-week high. The Nasdaq 100-linked Invesco QQQ Trust ETF (QQQ) traded 1.9% higher, and the SPDR S&P 500 (SPY) ETF climbed 2.2%.

The Nasdaq is down by about 18% year to date through Wednesday’s close. The S&P 500 and Dow Jones Industrial Average are down 23.5% and 26.6%, respectively, through April 1.

Jobless Claims Surge in the U.S amidst the Coronavirus Outbreak

The number of confirmed cases of coronavirus affected rose above 2,17,000 in the U.S. As New York state continues to be the epicenter of the outbreak in the U.S, the Labor Department reported 6.65 million jobless claims, almost double of the last week’s 3.3 million figure.

The stock market appears to be in a state of correction amidst the virus outbreak, with the major stock indexes struggling to maintain a rally attempt. Investors are yet to receive a green light on investing in the top growth stocks.