Another wave of shutdowns beginning across the United States has decreased the bullish trend garnered from Pfizer’s promising vaccine results earlier in the week. Additional lockdowns and the potential decrease in job opportunities once again threaten to stifle economic recovery.
Following the market’s open today, the Dow Jones Industrial Average fell 160 points and the S&P 500 dropped 0.3%. Additionally, stocks of the ten-year Treasury bond-an example of investor confidence in the equities market that usually moves with labor-market sentiment—fell about 5%.
All these falls can be attributed to the fact that the Labor Department’s recent data showed that over seven-hundred thousand people filed new unemployment claims which is much higher than pre-pandemic highs.
Opposingly, the tech-heavy Nasdaq index edged up 0.2%. Also, Fossil and Pinduoduo shares soared approximately 21% and 23% respectively, after both companies reported better-than-expected third-quarter revenues.
Finally, global markets showed mixed reports, with The U.K.’s FTSE 100 and France’s CAC 40 going down by 1.2% and 1.6%, whereas Japan’s Nikkei 225 went up by 0.7%.
Overall, markets have not had a sense of stability since the onslaught of the pandemic. And as seen by today’s fall, this unpredictability will continue as long as the economy is impacted by continued lockdowns and closures of major business sectors, until a true and tested way to combat the virus is established.