Pandemic sets US stock markets – Fed warns of difficult months

Federal Reserve Chairman Powell warns of challenging months for the US economy. Shares in the Fox media group are already feeling this. They fell significantly after verbal attacks by the elected President Trump. The vaccine manufacturer Moderna, on the other hand, went up. The corona crisis has the US stock exchanges fully under control again. The high number of new infections undermined investor euphoria in the face of promising vaccine data on Thursday. The Dow Jones index of standard values ​​closed 1.1 percent lower to 29,080 points. The technology-heavy Nasdaq fell 0.7 percent to 11,709 points. The broad S&P 500 lost one percent to 3537 points.

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In Europe, too, investors had withdrawn. “The focus has shifted from politics, elections, stimulus programs back to where it was before, namely on the virus and its economic impact,” said fund manager Keith Buchanan of wealth manager Globalt Investments in Atlanta. Given the rapid expansion, policymakers have begun to consider further restrictions. The USA has a record for the second day in a row with 142,279 new corona infections. In addition, the number is above the threshold of 100,000 for the eighth day in a row. A total of around 10.4 million infections have been detected in the USA. Safe havens were therefore in demand with investors: the yield on ten-year US securities fell to 0.901 from 0.989 percent. Gold rose 0.7 percent to $ 1,877 per troy ounce (31 grams). Encouraging vaccine data and the prospect of moderate economic regulation by a US Congress possibly split between Democrats and Republicans had previously propelled the US indices by up to eleven percent in just under two weeks.

Powell: The next few months will be challenging

Federal Reserve Chairman Jerome Powell welcomed the positive news about vaccines, but at the same time urged caution. The next few months could be challenging for the US economy, he emphasized at a virtual central bank conference of the European Central Bank (ECB). Since the central bank is supposed to ensure full employment, the job market is a particular focus for Powell.

Moderna Inc. 74.55

“The initial applications for unemployment benefits show a decreasing trend, but millions of jobs are missing and unemployment is too high,” said economist Ralf Umlauf from Helaba. A total of 709,000 Americans submitted such an application for state support last week, 48,000 fewer than a week earlier, according to the Department of Labor in Washington. Shares in vaccine developer Moderna gained around 6.5 percent. The company now has enough data to comment on the effectiveness of its corona vaccine. The US disease expert Anthony Fauci expected positive results because the vaccine is almost identical to the agent from Biontech and Pfizer.

In contrast, the shares of airlines and cruise operators particularly affected by the pandemic continued to decline. Royal Caribbean Cruises lost 3.9 percent, Carnival more than four percent. Shares in the US media group Fox got under the wheels after verbal attacks by the elected President Donald Trump. The papers fell 6.6 percent to $ 25.64. In a series of short messages on Twitter, Trump urged viewers to tune out of Fox News. He and his aides had indicated they believed Fox News treated Trump unfairly during the election. They referred to the proclamation of a victory for President-elect Joe Biden in the state of Arizona.

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