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Wall Street Tumbles on Rising Coronavirus Cases; Banks Lead Declines

New York Wall Street’s major indexes tumbled on Friday as several U.S. states imposed business restrictions in response to a surge in coronavirus cases and as financial shares tumbled after the Federal Reserve moved to cap bank dividend payments, Reuters reported.
Several U.S. states that were spared the brunt of the initial coronavirus outbreak or moved early to lift restrictions are seeing a resurgence in new infections. On Friday, Texas and Florida ordered bars to close down again.
On the benchmark S&P 500, financial shares led in percentage losses. Bank shares plummeted 5.9% after the Federal Reserve limited dividend payments and barred share repurchases until at least the fourth quarter following its annual stress test.
Renewed concerns over the novel coronavirus pandemic has threatened to derail a strong rally for Wall Street that has brought the S&P 500 within 11% of its February record closing high.
During Friday’s session, the S&P 500 briefly traded below its 200-day moving average, an indicator of long-term momentum. A close below that level could signal further losses.


Source: Saudi Press Agency

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