A big early gain for stocks suddenly flipped to losses after Gov. Gavin Newsom ordered new restrictions to quell a surge in coronavirus cases.
and other global hot spots. Monday’s sudden dive for markets after California’s announcement was reminiscent of similar recent market reactions after Florida and other Sun Belt locations have announced rising numbers of known infections and deaths.If states continue to bring back restrictions on their economies to slow the resurgence, it could choke off the fragile economic improvements just as they got underway.
“The most important thing is COVID-19 data,” said Darrell Cronk, chief investment officer of Wells Fargo Wealth and Investment Management. “That’s going to affect whether we have to slow down or stop economic activity in the back half of the year.” Such concerns have helped the price of gold recently rally to its highest level since September 2011, shortly after it set its record. Gold added $12.20 to settle at $1,814.10 per ounce Monday.
Another measure of nervousness in the market also ticked higher. The VIX, which shows how much volatility traders expect from the S&P 500 in upcoming weeks, rose 18%.PepsiCo added 0.3% even though it said its profit fell 19% last quarter from a year earlier. Results were better than Wall Street had forecast, leading to the lift.
Benchmark U.S. crude fell 1.1% to settle at $40.10 per barrel. Brent crude, the international standard, fell 1.2% to $42.72 per barrel.Get our Boiling Point newsletter for the latest on the power sector, water wars and more — and what they mean for California.
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