Stocks slide on new U.S. virus cases
Investors sold off stocks Wednesday, worried over the continuing rise in new COVID-19 cases in some U.S. states. In particular, Florida, Texas, California and Arizona are seeing a spike as America and other nations open up. On Wednesday, for instance, Toronto finally entered phase two that allows malls and bars to open. After bouncing back for the last three months, Wall Street saw steep declines with the Dow Jones plunging 2.72%, the S&P falling 2.58% and the Nasdaq shedding 2.19%. Industrials and consumer discretionary stocks were hit hard. JPMorgan dropped 3.34% while travel names such as United Airlines nosedived 8.34%. Even tech darlings which had struck new all-time highs the day before, lost ground with Facebook slipping 3.39%. Controversially, Trump is threatening to launch new tariffs on the E.U. in a spat over Airbus. Washington is also considering aluminum tariffs on Canada, which is putting investors further on edge.
Despite that, Bay Street outperformed its New York peers on Wednesday, with the TSX slipping only 1.68%. In particular, energy weighed down the Toronto index, falling 3.78%. Oil oversupply is to blame. Both WCS and WTI prices fell around 6%. Though shops are reopening across Canada, Canada Goose stock dropped 6.68% and even tech favourite, Lightspeed, plunged nearly 5%.