Fed Chief's Comments Put a Damper on Markets

Dow drops 317 after Powell speaks of economic uncertainty
By Newser Editors,  Newser Staff
Posted Nov 12, 2020 3:07 PM CST
Vaccine Euphoria Fades on Wall Street
In this photo provided by the New York Stock Exchange, Benjamin Tuchman, center, works with fellow traders on the floor Wednesday Nov. 11, 2020.   (Courtney Crow/New York Stock Exchange via AP)

For the stock market this week, COVID giveth and COVID taketh away. After big surges because of great news on a potential vaccine, the market dropped on Thursday amid concerns about daily, six-figure increases in US cases, reports the Wall Street Journal. The Dow fell 317 points, or 1%, to 29,080; the S&P 500 fell 35 points, also 1%, to 3,537; and the Nasdaq fell 76 points, or 0.6%, to 11,702. Markets around the world took a similar pause, notes the AP. US markets in particular turned downward after comments from Fed chief Jerome Powell about economic uncertainty, reports CNBC.

“From our standpoint, it’s just too soon to assess with any confidence the implications of the news for the path of the economy, especially in the near term,” he said, referring to a possible vaccine. “With the virus spreading, the next few months could be challenging.” Increasingly, lawmakers around the US are turning to tougher restrictions for businesses in a bid to check the spread of the virus and keep hospitals from getting overwhelmed. Travel stocks were among Thursday's worst performers. (Read more stock market stories.)

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