US markets fell on fears of a second wave of falls, with the S & P 500 (INDEXSP: .INX) falling more than 1.5 percent over the course of the day and the Dow Jones Industrial Average down 2.7 percent. Bank of Japan Governor Haruhiko Kuroda said it would do everything in its power to save the economy from the damage caused by the COVID-19 pandemic. Japanese Prime Minister Shinzo Abe said the country would speed up the approval of coronavirus-related drugs. A new coronavirus infection was reported in Japan on Wednesday, according to Japan’s Centers for Disease Control and Prevention. Following President Donald Trump’s election victory last week, the European Union is said to have agreed with the United States to resume trade negotiations and strengthen cooperation between the two sides.
The Italian government said the various regions would decide at their own pace, while daily infection data continued to decline. German Chancellor Angela Merkel said the crisis in the Middle East and North Africa, the world’s most dangerous region, was solvable.
NIAID Director Anthony Fauci, who testified before the Senate today, warned of a second wave of lawsuits if the U.S. reopens the states too quickly. This echoed what Philadelphia Fed President Patrick Harker said in a speech at the Federal Reserve Bank of New York’s annual meeting.
The New York Fed’s chief economist says the Federal Reserve has begun buying corporate bonds and ETFs today to ease pressure on credit markets.
House Democrats unveiled a $3 trillion proposal late in the day to support the coronavirus. Both the Bank of England and the Bank of Japan have promised further monetary stimulus, the first since the 2008 financial crisis.
The most important sectors today are materials, health care, and consumer staples, but General Mills (GIS) lead with very positive numbers.
AbbVie (ABBV) has boosted its healthcare business following positive analyst comments from JPMorgan. Grubhub (GRUB) reacted angrily to reports that Uber (UBER) had approached the company with a takeover bid.
Chesapeake Energy (CHK) weakened again as the company teetered on the brink of bankruptcy(Read our reasons why Chesapeake will declare bankruptcy), and airlines weighed on the industry after the boss of Boeing (BA) warned that one of the largest airlines could go bust because of coronavirus. The worst performing sectors were real estate and finance. 11 sectors of the S & P 500 closed lower.
Donald S. Wiggins loves learning about business trends. He has 5 years of experience in financial news and worked his way up from a writer to a senior staff member. He is one of the original writers of alphabetastock.com with a goal to increase readership and financial news coverage throughout 2019. Wiggins is the editor and manager of “Services” category.