Nov. 12 (UPI) — Shares slid Thursday as extra states and cities introduced new lockdowns and restrictions amid rising coronavirus numbers, elevating considerations in regards to the financial system.
The Dow Jones Industrial Common closed down 319 factors, or 1.1%. The S&P 500 dropped 1% and the Nasdaq Composite dropped 0.7%.
The slide erased a lot of the features from earlier within the week in response to constructive COVID-19 vaccine trial information.
The USA confirmed one other record-breaking 143,200 new COVID-19 circumstances Wednesday, with a spike in deaths of about 2,000. The surge in circumstances has prompted a number of states and cities, together with New York, Ohio and Chicago, to implement new restrictions on gatherings and encourage residents to remain dwelling.
The brand new restrictions are growing fears of one other hit to the U.S. financial system after practically nationwide lockdowns within the spring prompted a pointy rise in unemployment ranges.
Federal Reserve Chairman Jerome Powell on Thursday warned that although the financial system is recovering from the hits taken earlier within the 12 months, it will possible by no means appear like it did earlier than the pandemic.
“We’re recovering, however to a special financial system,” he stated throughout a digital panel with the European Central Financial institution’s Discussion board on Central Banking.
Powell stated People’ rising reliance on know-how for distant working will possible have lasting results on how individuals work sooner or later. He stated there additionally will likely be gaps on regrowing financial stability of sure People.
“Even after the unemployment price goes down and there is a vaccine, there’s going to be a most likely substantial personnel who’re going to want help as they’re discovering their manner within the post-pandemic financial system, as a result of it is going to be completely different in some elementary methods.