InvestorQ : Why have the US markets been falling consistently in the week?
Mary Joseph made post

Why have the US markets been falling consistently in the week?

Answer
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sara Kunju answered.
6 months ago


Of course, it is the COVID-19 that is causing panic in the Dow and the NASDAQ. However, there are three very specific reasons why the markets are really worried about the US. Firstly, the US is becoming the new hotspot of the Coronavirus with over 2.8 lakh confirmed cases and over 7500 casualties. To add to that, the financial capital of New York is emerging as the worst affected in the US. Secondly, the jobless claims doubled from 3.3 million to 6.6 million in just a week. In less than 2 months, the jobless figures have jumped above 10% and experts are estimating it to get closer to 15% by June this year. Lastly, the big worry is the impact on GDP growth. While the March and June quarter are likely to be flat to negative, the economists are predicting that even for calendar year 2021, the US could end up with negative growth. That could be really negative for market sentiments.