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U.S. Stocks Plunge as Covid-19 Infections Soar

Stocks fall as Texas rolls back reopening of the economy.

The Dow and broader U.S. stock market plunged anew on Friday, ass Texas announced plans to roll back some reopenings following a wave of coronavirus infection.

All of Wall Street’s major indices finished in negative territory, with the Dow Jones Industrial Average (DIA) falling 730.12 points, or 2.8%, to 25,015.48.

The broad S&P 500 Index (SPY) of large-cap stocks declined 2.4% to close at 3,009.02. All 11 primary sectors recorded declines, with financials leading the pack. Communication services and energy companies also reported large declines.

Meanwhile, the technology-focused Nasdaq Composite Index (QQQ) fell 2.6% to settle at 9,757.22.

A measure of implied volatility known as the CBOE VIX (VXX) rose sharply on Friday. VIX rallied 7.3% to 34.56 on a scale of 1-100 where 20 represents the historic average.

Texas Governor Greg Abbott announced Friday that he will roll back the state’s reopening plans following a wave of new COVID-19 infections. Meanwhile, Florida reported 8,933 new cases, surpassing its previous daily high.

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More than 2.4 million people in the United States have been infected with the novel disease. Globally, the caseload is closer to 9.7 million.

In economic data, personal spending rose 8.2% in May, while personal income fell 4.2%, the Department of Commerce reported Friday.

Separately, the University of Michigan’s consumer sentiment index dipped to 78.1 in June, which was slightly below expectations.

The Final Word: Already in the midst of a recession, the U.S. economy could be dealt another major blow in the coming months as coronavirus continues to spread. In addition to Texas and Florida, California and Arizona have also reported a surge in infections.