BREAKING: Dow Jones plummets nearly 7% amid concerns about new spikes in COVID-19 cases and gloomy economic forecasts.
"Today the market woke up to news that should have been apparent to anyone who lives outside the New York tri-state area: People in the rest of the country are out and about, largely not wearing masks and not keeping 6 feet apart," Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said in a commentary about Thursday's sell-off.
"Not surprisingly, a lack of preventative behavior has led to a resurgence in Covid-19 cases around the country and the stock market is having another gut check," he added."The economy is going through a demand shock that is likely to last a year or more and won't bounce back to full strength until a cure or vaccine is widely available," he added.
Two leading economic organizations also released pessimistic forecasts about the road to recovery on Wednesday.that U.S. gross domestic product expected to fall by 8.5% in 2020 if a second wave hits and by 7.3% even without a second wave.
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