Business Insider

Stocks – Wall Street Set to Snap 2-Week Win Streak as Virus Jitters Return

imageStock Markets6 hours ago (Feb 21, 2020 01:18PM ET)

(C) Reuters.

By Yasin Ebrahim – Wall Street is on pace to snap two-week winning streak Friday, as an upswing in the number of coronavirus infections flagged concerns about global growth and forced traders to rein in their bullish bets on stocks for the second-straight day.

The S&P 500 slipped 0.83%, the Nasdaq Composite lost 1.51% and the Dow Jones Industrial Average fell 0.72%.

More than 800 new Covid-19 cases were reported in China overnight, taking the total to 75,000 confirmed cases and the death toll above 2,000. Outside mainland China, meanwhile, infections continue to rise. South Korea recorded 100 new cases, six cases were confirmed in Italy and the World Health Organization said Iran now has its first case of the disease.

The rise in infections renewed fears of a coronavirus pandemic, forcing investors to ditch chip stocks amid concerns about a prolonged disruption to supply chains in China, the world’s factory.

Advanced Micro Devices (NASDAQ:AMD), Nvidia (NASDAQ:NVDA) and Micron Technology (NASDAQ:MU) led the selloff in tech, with Microsoft (NASDAQ:MSFT) and (NYSE:CRM) also adding to downside momentum.

And the selling may intensify heading into the close amid uncertainty over the weekend, Scotiabank warned.

“There is the risk that markets could shed more risk into the close given uncertainty ahead of weekend developments and that wouldn’t be terribly unusual given the Friday patterns for some time now.”

The impact of the virus was also flagged in the latest U.S. services sector, which saw activity fall to its lowest in six years, according to IHS Market.

The positive backdrop for corporate earnings offered little respite.

Dropbox (NASDAQ:DBX) surged 21% as CEO Drew Houston said the company would turn a profit by the end of the year, following better-than-expected fourth-quarter results.

Deere (NYSE:DE), meanwhile, climbed 8.7% after topping estimates on both the top and bottom lines, with CEO John May touting optimism that weakness in in the U.S. farm sector was reaching a bottom.

Stocks – Wall Street Set to Snap 2-Week Win Streak as Virus Jitters Return

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!