Move FM Global News

NEW YORK, New York – U.S. stocks weakened sharply again on Wednesday as comments by President Donald Trump that the coronavirus crisis will worsen sent markets reeling.

“With comments from President Trump and Cuomo suggesting this is going to get worse before it gets better, investors are coming to the realization the virus will be with us for longer than they would have expected,” Chris Zaccarelli, Chief Investment Officer, Independent Advisor Alliance, Charlotte, NC told Reuters Thomson.

“Because of that the bear market is going to last longer,” he said. “The longer people stay home the longer it takes for the economy to restart and the longer it takes for corporate earnings to come back.”

At the close of trading on Wednesday, the Dow Jones Industrial Average was down 973.65 points, or 4.44%, at 20,943.51.

The Standard and Poor’s 500 fell 114.09 points, or 4.41%, to 2,470.50.

The Nasdaq Composite lost 339.52 points, or 4.41%, to 7,360.58.

On foreign exchange markets, the U.S. dollar gave up early gains made in Asia. The euro however was unwanted, fetching just 1.0948 around the U.S. close Friday.

The Japanese yen was in demand, closing out around 107.12. The British pound cruised higher to 1.2387.

The Canadian dollar fell to 1.4189. The Australian and New Zealand dollars were softer too at 0.6068 and 0.5914 respectively.

Overseas, the worst hit market was the Paris-based CAC 40 which tumbled 4.30%. The German Dax sank 3.94%, while in London the FTSE 100 was off 3.83%.

On Asian markets, the Nikkei 225 in Japan was behind 851.60 points or 4.50% at 18,065.41.

In Australia however, the All Ordinaries defying the odds, gained 180.10 points or 3.52% to finish at 5,290.70.

China’s Shanghai Composite fell 15.77 points or 0.57% to 2,734.27.

The Hong Kong Hang Seng plummeted 517.69 points or 2.19% to 23,085.79.