BREAKING: Dow sinks more than 1,500 as virus cases rise again, deflating recent optimism that the economy would recover quickly.
, deflating recent optimism that the economy could recover quickly as lockdowns ease.
Those factors, along with the recent run-up in stock prices, set the stage for the wave of selling Thursday, said Sal Bruno, chief investment officer at IndexIQ. Small company stocks continued to bear the brunt of the selling, a signal that investors are becoming more pessimistic about a broad recovery in the economy. The Russell 2000 index lost 7.5%. European and Asian markets also fell.
Investors are still waiting for more data to see whether the spike in COVID-19 cases are a sign of a possible second wave of the infection, said Charlie Ripley, senior investment strategist for Allianz Investment Management.
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