A grim economic assessment by the us Central Bank, the Fed, and the fear of a second Corona-shaft have driven investors on Wall Street in the escape. The leading index Dow Jones Industrial broke on Thursday of 6.90 percent on 25.128,17 points and found himself on the same level as of the end of may. This was the largest percentage daily loss on a closing basis since March. In the meantime, the Dow would have dropped almost below the level of 25,000 points. For the broad market S&P 500 at the end by 5.89 per cent to 3002,10 points down.
Jerome Powell, the Chairman of the Fed, had already found middle of the week due to the severe economic crisis as a result of the Corona pandemic, clear words and said that a significant part of the job losses could be permanent. Joined on Thursday by new infection figures in the Corona-crisis: In some southern States, including Florida and Texas, the increase in new infections again. “We expect the re-introduction of some Corona-restrictions in some cities or States in the coming weeks,” said the British analysis house of the Pantheon.
In this environment, many investors continued to cash in. The Dow was climbing to the start of the week with 27.580 points, the highest level since the end of February. This was an increase of more than 50 percent since the Corona-crash low in March. Not less traders had already spoken of an Overheating of the market because of the cheap flood of money by the Central banks, which have nothing to do with the real economy prospects.
