The rebound of the epidemic in Europe and the United States and the delay of the two parties in the United States to reach agreement on a new round of fiscal stimulus bills are important factors in the decline of major indexes.
Affected by factors such as the rebound of the epidemic, negative sentiment permeated the market.
On Wednesday, the three major U.S. stock indexes fell sharply, the S&P 500 index fell below an important technical barrier, and the VIX panic index soared by more than 20%, breaking through the 40 mark. European stocks, crude oil, and precious metals also weakened.
At a critical moment, former New York Federal Reserve President Dudley issued a warning, "The Fed is really on the verge of running out of ammunition and food."
U.S. stocks plummeted
The Dow and the S&P 500 both recorded their biggest weekly declines since March this week. The Dow has fallen 6.41% so far this week, and closed at 942.40 points, or 3.43%, on Wednesday. The Standard & Poor's fell 5.61%, and the Nasdaq fell 4.71% this week.
Major US technology stocks generally fell. Apple fell 4.63%, Amazon fell 3.76%, Netflix fell 0.55%, Google fell 5.51%, Facebook fell 5.51%, and Microsoft fell 4.96%.
US financial stocks fell across the board. JPMorgan Chase fell 2.77%, Goldman Sachs fell 3.06%, Citigroup fell 1.72%, Morgan Stanley fell 2.06%, Bank of America fell 1.64%, Wells Fargo fell 2.84%, Berkshire Hathaway fell 2.64%.
Most US energy stocks fell. Exxon Mobil fell 3.81%, Chevron fell 3.86%, ConocoPhillips fell 4.92%, Schlumberger fell 5.96%, and Occidental Petroleum fell 4.21%.
Popular Chinese concept stocks, Alibaba fell 2.96%, JD.com fell 3.53%, Baidu fell 3.11%, Weilai Automobile fell 3.2%, Pinduoduo fell 0.35%; Shell rose 3.68%, and iQiyi rose 2.59%.
European stocks and oil prices plummeted, gold prices weakened
In European stock markets, the three major European stock indexes fell sharply. The FTSE 100 index in the UK reported 5582.80 points, down 146.19 points, or 2.55%; the CAC40 index in France reported 4571.12 points, or 159.54 points, or 3.37%; the DAX index in Germany reported 11560.51 points. It fell 503.06 points, or 4.17%.
International oil prices fell sharply. Both the US and Burundi oil fell more than 5%. WTI December crude oil futures fell 2.18 US dollars, or 5.51%, to close at 37.39 US dollars per barrel. Brent's December crude oil futures fell 2.08 US dollars, or 5.05%, to 39.12 US dollars per barrel.
International gold prices also weakened. The December gold futures price on the New York Mercantile Exchange fell by US$32.7 to close at US$1879.2 per ounce, a decrease of 1.71%. The price of silver futures for December delivery fell 4.93%, and the price of platinum futures for January 2021 fell 1.33%.
Multiple bad news
Due to the return of the epidemic, stricter business regulations have been restored in many places in Europe and America, and commercial activities have been restricted.
Anthony Fauci, the chief infectious disease expert of the White House, said on the 28th that the number of new crown cases in the United States has soared again and has now reached a record level.
Many places in the United States have once again started the "social distance" program. The city of Chicago in the United States will implement stricter epidemic management on October 30. The catering industry is once again prohibited from eating indoors, and outdoor operations must be closed at 11 pm. Some areas of Texas have also imposed a curfew in advance.
In Europe, French President Emmanuel Macron recently announced that the entire territory of France, including overseas territories, will be closed again from the 30th in response to the rapid rebound of the epidemic. Germany will implement a stricter social contact ban than the current measures from November 2nd, and the tentative implementation period will be the entire November.
In addition, according to Bloomberg news, the US stimulus bill has been delayed. Former New York Federal Reserve President Dudley warned that the US economic outlook has deteriorated and additional fiscal stimulus may be absent for several months.
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