Despite an amazing intraday high on Thursday, the stocks ended lower due to the change in the methodology of detecting COVID-19 deaths and cases. With the change, there was a sharp rise in coronavirus cases which adversely had an impact on the stock market globally.
Here’s a brief look into the major indexes
The DOW Jones Industrial Average went down by 128.11 points or 0.4% at 29,423.3 points. On the other hand, the S&P 500 index had a steep fall of around 0.2% or 5.51 points and closed at 3,373.94 that too after it recorded an amazing peak of 3,385.09 during the intraday gains. The NASDAQ Composite Index dropped by 0.1% at 9,711.97 instead of hitting a great intraday record in the afternoon with 9,748.32!
Even though these pitfalls were marked in the day, they were still positive given the fact that each of these indexes was having a great week already.
Driving force in the market
On Thursday, 254 new deaths were reported by the Chinese Government after they adopted a new methodology for detecting the COVID-19 affected population. The number of death cases jumped to 15152 with the coming of this new method of counting in the epicenter of the disease i.e. Hubei province. Later in the day, it was confirmed by the World Health Organization that the number of confirmed cases rose to 60,329.
Experts state that such a knee jerk to the market is due to the news of the virus escalation and the new methodology. However, this is due to the new methodology and rather than a new wave of the virus. This by no means reflects the fact that the spread of the virus is all of a sudden accelerated. While the market sentiment was following the trend that the virus is slowly getting faded, if the counts keep growing with every passing day there will be a reversal. Now that the market was upbeat, it will gradually again face a slump if this growth in count continues further.
Top companies in focus
- CISCO System Inc. CSCO stocks went down by 5% after it reported a profit in the second quarter late Wednesday. These figures were slightly higher than the Wall Street forecasts.
- PepsiCO Inc. While its revenue topped expectations of all and had a sharp rise of 7% in the dividends, the stock faced a sharp fall in its fourth-quarter earnings.
- Tesla Inc. Slid a bit after the electric vehicle manufacturer announced regarding investing $2 billion of Common Stock in an underwritten deal. However, the stock closed at around 5% higher!