- The Dow Jones slumped by 4% on Friday after Trump signed the $2 trillion relief bill.
- A Wuhan doctor’s warning on asymptomatic cases could add to the fear felt by the U.S. and Europe’s stock markets.
- With a gloomy macro landscape, researchers say stocks are headed for a deeper pullback.
The Dow Jones Industrial Average (DJIA) ended Friday with a 915-point drop, down 4% in a single session. The fall came swiftly after U.S. President Donald Trump signed the highly anticipated $2 trillion relief package. Now, warnings from a doctor in Wuhan present a new threat to the U.S. stock market.
China Sees Double-Digit Coronavirus Cases as Recovered Patients Test Positive
Patients that previously tested negative for coronavirus and were discharged from hospitals have started to test positive once again.
A Wuhan doctor told NPR he does not understand why Chinese authorities “choose not to count [asymptomatic] cases in the official case count.”
The doctor said:
“I am baffled.”
The U.S. and Europe financial markets could feel more fear as China recorded 54 new coronavirus cases on March 28.
Scientists say that the coronavirus pandemic in the U.S. is still weeks from peaking. April will likely be worse than March.
With the $2 trillion relief package in place, there is no significant fiscal boost in the near-term that could provoke a strong reaction from the Dow Jones.
Only a reduction in the number of new coronavirus cases and significant progress in virus containment are likely to lead to a stable Dow Jones recovery.
Not All Dow Jones Dips Are for Buying, Says Market Researcher
According to market researcher Charles Edwards, dips in the Dow Jones are currently highly risky to buy given the macro landscape of the U.S.
With yield curves inverted and 3.3 million jobless claims, the researcher suggested that the worst may be yet to come for the…