Businesses around the world are temporarily closed because the deadly coronavirus outbreak continued to escalate domestically and abroad. A report disclosed the claims of Jobless rocketed to 3.2 million which hit the stocks market future. Future of Dow Jones Industrial Average fell 217 points at 20, 817, S&P 500 index were down 1%at 2,441 while the Nasdaq-100 future decrease 0.9% at 7,401.
A jobless claim which was released at 8.30 am on Thursday will give a clue to investors and shows the severity of pandemic spread across the globe. The deadly coronavirus, officially known as COVID-19, has affected 199 countries around the world.
488,435 people are infected with COVID-19 and the death toll reached 22,071 around the globe. The death rate increased to 15.80% and the recovery rate is 84.20%. The US has reported 68,594 cases and 1,032 deaths were recorded in the country. Chief Investment Officer at LPL Financial said: “The number of job losses may allow markets to gauge the severity of the potential recession and move closer to beginning recovery.”
Global stock market prices have fluctuated as businesses around the world are closed because of the novel coronavirus. Investors said that they believed that coronavirus cases will decrease before the prices fall at the worst point.
According to the labor department weekly report, new unemployment claims reached 3.28 million for the week ending March 21. Recently, the US Senate passed a $2 trillion package to help the businesses and reduce the economic impact of the coronavirus pandemic.
The package includes $500 billion for large organizations $367 billion loan package for small businesses $150 billion for the assistance of government.
Federal Reserve Chairman Jerome Powell has vowed that the central bank will continue their assistance and will provide the capital to businesses to curb the loss of coronavirus. Powell said: “When it comes to this lending, we’re not going to run out of ammunition, that doesn’t happen. We still have policy room in other dimensions to support the economy.”
In Europe, London’s FTSE 100 dropped 1.5% and Frankfurt’s DAX dropped 2%. The CAC 40 in France withdrew by 1.9%. In Asia, the Nikkei 225 in Tokyo sank 4.5% while Hong Kong’s Hang Seng dropped 0.7%. The Shanghai Composite Index sank 0.6%.