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COVID-19 Increases Cause Stocks to Fall

Wednesday’s market saw a sharp stock drop in response to coronavirus numbers growing across the U.S. Airline, cruise, and retail industries are bearing the brunt of investor concerns, leading to the S&P 500 (SPX) seeing upwards of a two percent drop.

With today’s headlines reporting things like record-breaking virus hospitalizations and twenty states seeing increases in reported cases, investors are understandably worried. Idaho, for instance, is seeing businesses shutter their doors once again in response to increased virus circulation and have implemented restrictions on gatherings of more than 50 people.

It’s not just the U.S. that is seeing a resurgence of COVID-19 infection rates. Beijing is currently in the midst of a second outbreak wave. And Germany has reimposed a strict lockdown on its residents following reported infections of 1,700 meatpacking plant employees.

There are also reported considerations by the European Union (EU) to implement travel restrictions potentially for Americans and other countries in an attempt to control further outbreaks of the virus. An EU official told CNN, “Our first priority is we are in a pandemic, and we need to keep our citizens safe. We are working to an agreement that would allow us to coordinate the opening of the borders and we are discussing which countries are going to be allowed in first, and this is a positive list, we want people to come.”

As stocks dip, gold is seeing spikes in response to panic over the virus. On Wednesday, it was reported that gold had almost reached the same record peak it hit in 2012. The spot price of gold went up 0.6 percent to $1,777.53 per ounce.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.


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