Stocks such as American Airlines, United Airlines, Bank of America, JP Morgan, and Goldman Sachs have taken a severe beating this week.
The Dow Jones futures are trading lower as traders lost their faith in coronavirus stock market rally. This is due to the second coronavirus wave and fragile U. S. economic data. The U. S. has over 3 million COVID-19 cases, and Florida has experienced record deaths. We are not seeing the economic activity improving at a pace that was previously anticipated. For instance, there are 95% fewer people eating at outdoor restaurants in New York than a year ago.
Donald Trump is assuring Americans that he has a plan to put America back on track. The fact is that Covid-19 has triggered a massive wave of bankruptcies in America. We have seen a surge in bankruptcies in sectors such as retail, airline, and restaurants. Many big names like Hertz, J. C. Penney, and Brooks Brothers have also become victims of coronavirus. Investors are concerned about the third quarter stock earnings season, which is likely to bring more unpleasant news.
The stock market rally in the U. S. is immensely uneven. This is because the tech sector has done most of the lifting so far. The rest of the S&P 500 sectors have started to give up their gains. Leisure and banking sectors are sitting on top of this. Stocks such as American Airlines, United Airlines, Bank of America, JP Morgan, and Goldman Sachs have taken a severe beating this week.
The hopes are pinned on the next possible stimulus package. Trump is pushing for a $2 trillion stimulus package, and Congress will decide on this. Traders may get some favorable news because the odds are high for intermittent periods of shutdown in the U.
