How u.s. Conflict affected business

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How US Situation Affects Business and Stock Market

How protests in the United States affected trade and stock markets. Photo: en.as.com

Since May 25, protests against police violence have continued in the United States, which provoked the death of 46-year-old African American George Floyd. After his death across the country, people began participating in peaceful demonstrations, which escalated into pogroms and looting after clashes with police. As a result, curfew was imposed in dozens of major cities, including Washington. Some states have reinforced law enforcement forces with units of the National Guard. How the situation in the United States affects trade and stock markets – read further in the article Payspace magazine.

How the stock market responds

Photo: nypost.com

On Monday, June 1, during the opening of the business, the Dow Jones Industrial Average fell 140.82 points, or 0.5%, the S&P 500 fell 0.4% and the Nasdaq broke nearly 0.3%, reports. New york post. However, according to trading results on Tuesday 2 June, stock markets reacted poorly to protests in the country and Donald Trump’s threats about the use of force against protesters. As noted by the publication business InsiderShares of global stock markets jumped amid expectations for an early resumption of business activity.

Thus, futures of the Dow Jones and S&P 500 indices increased by 0.5%. In Asia, where civilian protests are also taking place in Hong Kong, trade has ended with an increase in Hong Kong’s Hang Seng index – 0.9%, Japanese Nikkei – 1.2% and China Shanghai Composite – 0.2%. In Europe, German DAX increased by 3.4%, British FTSE 100 – 0.8% and Euro Stocks 50 – 3.2%. Oil prices also rose: West Texas Intermediate – 2.2% to $ 36.25, Brent – 2.5% to $ 39.28.

At the same time, the base yield of 10-year US bonds fell by 0.01% and gold fell 0.2% to $ 1747 an ounce.

as reported financial TimesCiting the stock market and earlier the 1968 assassination of Martin Luther King, there was little response to the civil unrest, which led to the riots. Although the protest, which was said to be the largest since the Civil War, did not have much impact on the stock market, in contrast, the S&P 500 and the Dow Jones Industrial Index continued to grow.

How was the business affected

Target store robbery. Photo: cnbc.com

Large retailers temporarily closed their stores in the areas most affected by the protests. Apple tech giants, Amazon Whole Foods supermarket chain, and CVS pharmacy chain of pharmacies have announced that they will temporarily close stores or change their opening hours according to curfew. Also, some Apple Target and Whole Foods stores Robberies resulted In many cities in the United States.

It is noted that one of the Whole Foods chain stores in New York, which had changed its mode of operation due to the coronovirus epidemic, which was switched to food delivery, now completely stopped accepting online orders Have given.

According to Bloomberg, Amazon has shortened and adjusted routes “across multiple cities”, sending messages to some drivers in Chicago and Los Angeles with instructions to send packages and return home.

Also during curfews in many cities of the United States, Uber and Lyft taxi services and DoorDash food delivery services are no longer available.

On Monday June 1, dozens of employees of the Facebook social network went to work, staging a virtual strike to protest Donald Trump’s publications about his company’s position.

Last week, Facebook did not censor the Trump series’ post, including the message: “When the robbery begins, the shooting begins.” According to Zuckerberg, despite the presence of a historical absence in the record, he was omitted because the mention of the National Guard is a warning about the state’s actions, and people should know if the authorities planned to use force is. At the same time, another popular social network Twitter limited the ability to view, comment, and retweet the message on its platform, explaining its decision by the fact that the company’s rules regarding the promotion of publication violence Violates.

American economy awaits

According to experts, the main threat to the US economy is not protests, but the COVID-19 epidemic. According to The New York Times, citing the US Congressional Budget Office, in the next 10 years, the impact of Coronaracis could cost the US economy $ 16 trillion. Looking at inflation, it is estimated that by 2023 the country will lose 3% of GDP or $ 7.9 trillion.

Read:
Coronaviruses and Economics: How States Help Businesses
How the epidemic has changed banks: the digital revolution and new trends
Argentina’s nine defaults: what lesson Ukraine can learn
This crisis will teach us financial self-sufficiency. But it’s not ok
How Koronovirus Changed the Face of Ukrainian Retail: Problems, Solutions and Prospects
The world after COVID-19: what will happen to the dollar and which currencies can replace it


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