US stocks took a massive plunge on Wednesday, with the Dow Jones Industrial Average index falling more than 700 points amid a new uptick in COVID-19 coronavirus cases emerging across several US states.
Elsewhere, European markets underwent similar losses, as investor confidence plunged while new COVID-19 cases were recorded worldwide. In fact, Germany, whose Dax Performance index fell by more than 400 points earlier Wednesday, shuttered some of its districts following a new outbreak of the novel coronavirus.
Chris Rupkey, a chief financial economist with the Mitsubishi UFJ Financial Group, told CNBC that the latest news regarding COVID-19 figures wasn’t exactly “positive,” since stock market insiders had been “betting the worst of the pandemic recession was behind us.”
The Texas Department of State Health Services reported Tuesday that 5,489 new COVID-19 cases had been confirmed that day, and that 4,092 patients had been hospitalized with COVID-19 – an increase of 381 cases that led to hospitalizations when compared to Monday’s figures.
California’s COVID-19 spike isn’t far off from Texas’ figures. The Golden State’s Department of Public Health reported that it had confirmed 5,019 new COVID-19 cases on Tuesday and recorded over 3,800 hospitalizations – 1,225 of which were cases in which patients were placed in an intensive care unit.
State officials have promised to impose stricter measures in an effort to lessen the amount of new cases; however, investors fear that the new spikes mean that some officials may soon reimpose statewide shutdowns.