InvestorQ : Why did the Dow and NASDAQ have such a bad last week of October?
diksha shah made post

Why did the Dow and NASDAQ have such a bad last week of October?

Rutuja Nigam answered.
2 years ago

You are absolutely correct that it has been the worst week for the US markets since the carnage that we got to see in the month of March 2020. While rising COVID cases was one side of the story, the uncertainty over the Trump-Biden election is also one reason.

During the week, the Dow Jones lost as much as 5.5% value while the NASDAQ lost up to 6.5%. The election campaign is running neck and neck between Biden and Trump and this is likely to be too close to call. That is making the markets jittery to a great extent.

Apart from that, the COVID problem is worsening. The US has already reported more than 9.1 million total infections and over 230,000 casualties till date. Now scientists at the John Hopkins University are genuinely worried about a second wave of afflictions.

There has been good news on the economic front with the US economy growing 33% in the third quarter after a tepid Q1 and Q2. However, if the second round of afflictions become a reality, then there could be serious questions over economic growth.