The rising number of Coronavirus cases among various states in the US is pretty scary. Data from the World Health Organisation (WHO) website shows that it is not only the US but several countries around the world are experiencing an extraordinary rise in numbers. And this has adversely affected stock markets around the world, including Wall Street.
New reports claim that China may have falsified its number of Corona cases. After this report surfaced, shares of many US companies dipped due to their exposure to the Chinese markets. Giants such as Apple Inc., and Alphabet, which is the parent of Google Inc., also took a hit.
Road to the recovery of the US economy might be a steep one
- The unemployment data that came in last week from the US saw a mammoth 3.3 million people claiming to have lost their jobs. Analysts at Goldman Sachs believe that this number could reach around six million this week. Several manufacturing companies in Tokyo, UK are going out of business.
- Donald Trump warned US citizens to be extremely cautious in the coming two weeks as the number of cases might show an unprecedented rise. Wall Street felt the impact on Wednesday as the Dow Jones and S&P 500 went down by more than 4%.
The number of cases in the US alone is staggering
- At the time of publication of this article, (UTC: 09:45 am), the number of Coronavirus cases rose to 215,357.
- The number of casualties increased to 5,113.
And according to health experts, these numbers are expected to rise.
However, 8,878 people have already recovered, and steady recovery is in place for many others as well. So people are continuously advised to tread the coming few weeks cautiously.
Measures to catch the falling Dow Jones and S&P 500:
- US Government and the Central Bank are continuously working towards Quantitative easing measures, thereby infusing liquidity into the economy.
- Direct bank transfer of $1,200 to all US citizens will ensure that people stay in their homes and not go out in search of work.
- Some of the small scale businesses have been given various incentives to get by through these tough times.
- The monetary panel and the US Federal Reserve are trying everything in their arsenal to reinstate the trust of the investors.
Financial Markets around the world are going through tumultuous times. The only way to truly combat the COVID-19 pandemic has been through ‘lockdowns‘ which have been imposed in various countries. There is no doubt that these lockdowns have made things extremely difficult for businesses, but as the saying goes,
“Desperate times call for desperate measures.”
And what the whole world is experiencing now are truly desperate times.