US Markets Have Seen Sharp Decline in Closure

US Markets Have Seen Sharp Decline in Closure

The US market was immediately affected by the unfavorable forecasts predicted by the Fed (Central Bank of the United States) on behalf of the United States economy and the number of recent cases increased the panic of corona virus. Despite the corona virus epidemic and the protests that have had serious effects in the country recently, the US indices, which have experienced a 30 percent increase since late March, have seen a sharp decline in closing hours yesterday. The Dow Jones index experienced a serious decline of 6 percent, while the Nasdaq index and S&P 500 index decline exceeded a serious rate of 5 percent. VIX index, which is defined as the fear index, increased by 47.9 percent as of the closing hour yesterday. The United States stock exchanges had increased by over 30 percent in the past 10 weeks in response to the corona virus epidemic, the impact of the outbreak, many unemployed workers in the country, the economy fell to a nearly halt and protests in the country. Due to this increase, it was frequently mentioned by economists that financial markets were outside the real economy. As the concern for corona viruse came to light again, yesterday, the Dow Jones index fell 6.9 percent in the United States, while the Nasdaq index fell 5.27 percent and the S&P 500 index fell 5.89 percent. The return of the markets to the expected data was influenced by the recent statistics announced by Johns Hopkins University and the negative course predicted by the United States Central Bank (Fed). The stock exchanges of the United States had increased recently, with the morale after the economies started to go back again both in the country and in the world. The Fed's forecast of a contraction of 6.5 percent in 2020 on Wednesday and the need to be more resilient to rebound created a panic wind for investors.