US stock markets suffer sharpest drop due to increased COVID-19 cases

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US stock markets have suffered their sharpest drop in weeks as concerns about the economic impact of increasing coronavirus cases sent shares to suddenly fall.

The BBC is reporting that the Dow Jones Industrial Average closed down 2.3%, after dropping more than 3% earlier in the day. The S&P 500 fell 1.8% and the Nasdaq 1.6%.

Stocks in Europe also declined especially where new restrictions were imposed due to a rise in coronavirus cases. The heaviest losses were registered in shares in travel and energy firms.

In the US, cruise lines Royal Caribbean Group, Carnival and Norwegian all dropped more than 8%, while in the UK, British Airways owner IAG closed 7.6% lower.

Yesterday, France’s CAC 40 ended 1.9% lower, while Germany’s Dax index dropped 3.7%.

In the UK, the FTSE 100 fell nearly 1.2%.