Jakarta, CNBC Indonesia – Stock markets in the United States (US) closed lower in today’s trading. Not only weakened, but the correction is quite deep.
Early this morning Indonesian time, the Dow Jones Industrial Average (DJIA) closed at 33,962.04, down 2.09%. While the S&P 500 finished at 4,258.49 (-1.59%) and the Nasdaq Composite ended at 14,274.98 (-1.06%).
In fact, trading was lively, with volumes involving 12.02 billion units of shares. Far more than the average for the last 20 trading days, which was 10.17 billion units of shares. But the bustling transaction is selling, not wholesale.
When the three main indexes on Wall Street fell, the VIX index (which describes volatility in the market) jumped. The index is at 22.5, up 21.95%.
What makes the New York stock market go crazy?
“Mostly because of the delta variance,” said Paul Nolte, Portfolio Manager at Chicago-based Kingsview Asset Management, as quoted by Reuters.
Yes, the SARS CoV-2 virus is now present with new variants that are more contagious. This makes the disease caused by the corona virus (Coronavirus Disease-2019/Covid-19) has spread again, even in the land of Uncle Sam, which was once safe.
The World Health Organization (WHO) reported that the number of positive corona patients in the US as of July 18, 2021 was 33,723,155 people. An increase of 40,553 people from the previous day, the highest daily addition of cases since May 9, 2021.
In the last 14 days, the average positive patient increased by 24,637 people per day. An increase compared to the average of the previous 14 days, which was 12,733 people every day.
Therefore, a number of regions have again implemented the obligation to wear masks for residents who are active indoors and outdoors. For example, in Los Angeles, residents again have to wear masks even though they have been vaccinated.
“I’m not happy we have to go back to wearing masks. But what can I do, it’s to save lives. Right now, that’s the most important thing,” said Hilda Solis, Los Angeles County Superintendent, as quoted by US News.
Previously, the US economy had blossomed because the pandemic was more under control. However, the presence of a delta mutation from the corona virus has made the pandemic go ‘crazy’ again, threatening the lives and economy of the Superpower Country.
“There are concerns that economic activity will not be able to reopen as quickly as previously thought. The economic boom that we expect may only be a small explosion. It turns out that we still have a long way to go,” added Nolte.
Shares of issuers that were hit by the pandemic again collapsed. The airline stock index on the S&P 500 fell 3.8 percent, while the hotel and restaurant index fell 2.7 percent.
Today, Indonesia’s financial markets are closed to commemorate Eid al-Adha. If it were open, the Composite Stock Price Index would probably follow Wall Street’s lead. Karam…
CNBC INDONESIA RESEARCH TEAM
(aji / aji)