Global Stocks Fall On Worries Over Second Coronavirus Wave

Global Stocks Fall On Worries Over Second Coronavirus Wave

The US Federal Reserve predicts a 6.5% contraction in US gross domestic product for 2020, a 5% rebound in 2021, and 3.5% growth in 2022. The prospect of a second wave has come across as a real threat in recent days, with sudden increases in cases occurring in California, Arizona, Texas, and Florida after States began lifting restraint measures. Stock markets around the world retreated on Thursday amid fears of a second wave of coronavirus and a gloomy economic outlook from the US Federal Reserve. The Pan-European Stoxx 600 was down 3.1% in the afternoon European trading session, while all sectors on the continent and major stock markets fell into negative territory. Stateside stocks fell sharply on Thursday. The Dow Jones Industrial Average, the Nasdaq and the S&P 500 all fell more than 2% during the initial deals. Stock markets, led by Australia's S&P / ASX 200 and Japan's Nikkei 225, saw a broad fall. The declines were 3.05% and 2.82% respectively. Markets reacted negatively to the tough economic outlook from the Fed on Wednesday. The Fed also rejected federal funding target rate increases of 0-0.25%, the lowest level in its history, until 2022.