The S&P/ASX 200 Index (ASX: XJO) looks set to sink lower again on Friday after Wall Street had its worst day of trade since March.

At the time of writing, SPI futures are pointing to the ASX 200 falling a sizeable 181 points or 3.05% at the market open this morning.

What happened on Wall Street?

U.S. investors were heading to the exits in their droves last night after concerns over a second wave of coronavirus spooked the market.

According to CNBC, the U.S. topped two million coronavirus cases after the virus began to spread more quickly in states that aggressively reopened their economies. These include states such as Texas, Arizona, and North Carolina.

Texas, which was one of the first states to ease lockdown restrictions, has been hit particularly hard. The state has reported three consecutive days of record-breaking hospitalisation numbers.

Evercore ISI macro research analyst, Dennis DeBusschere, appears concerned that a second wave could put economic and company growth expectations at risk.

In a note, courtesy of CNBC, DeBusschere said: “With TX, AZ, CA new cases and hospitalizations increasing and investors concerned that recent protest will fuel a wave of infections, the risk of persistently weak economic and earnings growth has increased. S&P fair value estimates are falling as a result.”

And while the U.S. Federal Reserve is supporting the market with its monetary policy, he warned that the Fed cannot “offset a severe COVID second wave.”

This ultimately led to the Dow Jones Industrial Average crashing 1861.82 points or 6.9% lower on Thursday. This was the Dow’s fourth-worst point loss ever and puts it on course to record its worst weekly decline since mid-March.

Elsewhere, the S&P 500 fell a sizeable 5.9% and the technology-focused Nasdaq index sank 5.3% lower.

Almost all shares were sold off.

While 11 out of 11 sectors traded lower for the day, some areas of the market fell more than most.

Banks, travel companies, and energy shares were particularly poor performers. The latter was driven by a sharp decline in oil prices amid concerns that a second wave could cause another decline in demand.

This could mean it will be another tough day of trade for the likes of Commonwealth Bank of Australia (ASX: CBA), Santos Ltd (ASX: STO), and Webjet Limited (ASX: WEB) on Friday.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops 3%, Webjet share price sinks
• These ASX 200 stocks just got downgraded by top brokers
• 3 of the best ASX 200 blue chip shares to buy today
• Why the Webjet share price isn’t a bargain buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX 200 to sink lower after Wall Street crashes on second wave concerns appeared first on Motley Fool Australia.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) ended its winning streak and sunk notably lower. The benchmark index fell a disappointing 3.05% to 5,960.6 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to extend its decline.

It looks set to be another bleak day of trade for the ASX 200 after Wall Street crashed lower overnight. According to the latest SPI futures, the benchmark index is expected to sink 185 points or 3.1% lower at the open. On Wall Street the Dow Jones dropped 6.9%, the S&P 500 fell 5.9%, and the Nasdaq sank 5.3%.

Wall Street sell off.

U.S. stocks have just had their worst day in three months after a spike in coronavirus cases in the United States led to concerns over a second wave. Very few shares were spared during last night’s selloff. Airlines, travel shares, banks, and retailers were sold off. This could put further pressure on the likes of Australia and New Zealand Banking GrpLtd (ASX: ANZ) and Webjet Limited (ASX: WEB) today.

Oil prices tumble lower.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under significant pressure after oil prices crashed lower overnight. According to Bloomberg, the WTI crude oil price dropped 9% to US$36.05 a barrel and the Brent crude oil price crashed 8.5% to US$38.17 a barrel.

Gold price pushes higher.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could be pushing higher today after the market crash sent the gold price jumping higher. According to CNBC, the spot gold price rose 0.85% to US$1,735.20 an ounce.

JB Hi-Fi shares given neutral rating.

The JB Hi-Fi Limited (ASX: JBH) share price could be fully valued according to analysts at Goldman Sachs. Although the broker was impressed with the retailer’s trading update on Thursday, it has only lifted its price target to $39.30. So, with its shares closing the day at $40.22, Goldman has held firm with its neutral rating.

More reading

• ASX 200 to sink lower after Wall Street crashes on second wave concerns
• ASX 200 drops 3%, Webjet share price sinks
• These ASX 200 stocks just got downgraded by top brokers
• Why the Webjet share price isn’t a bargain buy
• These ASX shares are the best way to invest overseas

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 5 things to watch on the ASX 200 on Friday appeared first on Motley Fool Australia.

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