Stocks Sink As Rising Coronavirus Cases Deepen Fears About Economy

Enlarge this image

The U.S. flag hangs outside the New York Stock Exchange on Oct. 14, 2020, in New York. Stocks sank on Wednesday as rising coronavirus cases spooked investors.

Frank Franklin II/AP

hide caption

toggle caption

Frank Franklin II/AP

Health
U.S. Coronavirus Cases Surpass Summer Peak And Are Climbing Higher Fast

In Illinois, which announced new pandemic guidelines on Tuesday, officials are warning about a resurgence of infections and deaths.

«If I haven’t made it clear, we are in that second wave that we have been alluding to for months,» said Dr Ngozi Ezike, director of the state’s department of public health.

A similar surge is occurring in Europe. France and Italy have seen a record spike in new cases, and Germany has proposed closing bars and restaurants for a month.

The ongoing slowdown in economic activity is taking a toll on companies, especially those that depend on travel and tourism.

Business
Stocks Tumble As Coronavirus Cases Spike Again In U.S. And Europe

Boeing said on Wednesday it plans to cut thousands of additional jobs through next year, because of the decline in air travel. The airplane maker reported its fourth quarterly loss, sending its shares down 2.5%.

Losses in markets were widespread, with airlines and leisure stocks continuing to extend recent losses. United Airlines was down 4.6% while Marriott International was down 3.2%.

The stock market losses comes a day ahead of the U.S. third-quarter gross domestic product data. The economy is expected to have grown at least at an annual rate of 30% in the July-September quarter, in the last report card before the election.

However, economists warn that the surge in growth reflects pent-up activity after lockdowns earlier this year, and worries are resurfacing about how a new wave of coronavirus cases would impact the global economy.

• stocks
• Stock market
• Wall Street