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Stocks knocked down by virus resurgence fears

Video Credit: Reuters Studio
Published on May 12, 2020 - Duration: 02:03s

Stocks knocked down by virus resurgence fears

Wall Street dropped two percent on Tuesday following a warning from America's top infectious disease expert that reopening the nation's economy too quickly could lead to a fresh outbreak that would likely further damage the economy.

Conway G.

Gittens has the Wall Street recap.

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Stocks knocked down by virus resurgence fears

Wall Street took a hit Tuesday after America's top infectious diseases expert warned reopening the economy too fast could spark another wave of the pandemic.

All three major indices finished lower with stocks falling about two percent across the board.

Fear of a second outbreak isn't the market's only problem, says Randy Watts, chief investment officer at O'Neil Global Advisors .

SOUNDBITE (ENGLISH): RANDY WATTS, CHIEF INVESTMENT OFFICER, O'NEILL GLOBAL ADVISORS, SAYING: "I think that this point the market has been so narrow, for example: Microsoft, Amazon and

Class="kln">Apple have accounted for about 80 percent of the Nasdaq 100 performance gain this year.

I think the market is going to have a very tough time from here moving higher unless the market can broaden out into a variety of other groups.

I don't think the market can have a big move from here if its just going to be cloud computing and health care." The Federal Reserve is doing what it can to sow the seeds of a broad economic recovery.

On Tuesday it kicked off a corporate bond-buying program, including purchases of risky debt, through ETFs in order to bolster the credit market... And there's more stimulus plans working its way through Washington.

House Democrats unveiled a more than $3 trillion coronavirus economic relief package, which includes $1 trillion in assistance for state and local governments.

The White House said that before it signs on to any more stimulus it wants to see how state reopenings go.

All this comes amid another round of dismal economic data.

Consumer prices in April suffered their biggest nosedive since the Great Recession.

Twitter on Tuesday became the first major tech company to tell employees they can work from home - indefinitely.

Uber is in advanced talks to buy GrubHub in a bid to combine their online food delivery services, a source told Reuters.

Uber said it doesn't respond to deal speculation.

GrubHub didn't confirm talks but said industry consolidation makes sense.

Shares of GrubHub surged nearly 30 percent.

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