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Stocks move lower on Wall Street after big three-day rally

Published: (Updated: ) in Australian News by .

Stocks have fallen on Wall Street as investors waited for Congress to deliver a big financial rescue package aimed at cushioning ailing businesses and households from the coronavirus crisis.

Stocks have fallen on Wall Street as investors waited for Congress to deliver a big financial rescue package aimed at cushioning ailing businesses and households from the coronavirus crisis.

The selling on Friday morning (local time) erased some of the market's gains after a strong three-day rally that has the major stock indexes on track for their first weekly gain in three weeks.

Even after the winning streak this week the market is down 25 percent from the peak it reached a month ago.

The S&P 500 was down 3.5 percent in morning trading, but is up just above 10 percent for the week.

The benchmark index shot up 17 percent over the previous three days as traders became hopeful that Congress would pass the US$2.2 trillion economic aid package.

The Dow Jones Industrial Average dropped 3.9 percent. It's up more than 13 percent for the week. European markets also fell. Asian markets closed mostly higher.

The House of Representatives was due to vote on the unprecedented economic rescue package later Friday.

The bill, which the Senate passed on Thursday, includes direct payments to households, aid to hard-hit industries like airlines and support for small businesses.

The business shutdowns that have swept across the country forced 3.3 million Americans to apply for unemployment aid last week, a historic spike.

Investors had appeared to shrug off the miserable news on unemployment Thursday.

"Rallies don't last forever and clearly investors are happy to call time on this one as we head into another uncertain weekend," Craig Erlam of Oanda said in a report.

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New government data Friday showed US consumer spending inched up 0.2 percent last month, matching January's gain.

But economists expect spending will be down sharply in coming months, reflecting the impact of business shutdowns and layoffs.

The prospect of meaningful financial help to offset the economic damage caused by the coronavirus mitigated some of the concerns about the steep job losses the economy is beginning to see.

But barring unexpected good news, it's a matter of time before this stimulus-fuelled rally fades, analysts said.

Congress' efforts to deliver financial relief for Americans are taking on more urgency as the outbreak continues to widen.

The number of cases in the US has now surpassed those in China and Italy, climbing to more than 86,000 known cases, according to Johns Hopkins University.

The worldwide total has topped 550,000, and the death toll has climbed to more than 25,000, while more than 127,000 have recovered.

Coronavirus: what you need to know

How is coronavirus transmitted?

The human coronavirus is only spread from someone infected with COVID-19 to another. This occurs through close contact with an infected person through contaminated droplets spread by coughing or sneezing, or by contact with contaminated hands or surfaces.

What are the symptoms of someone infected with coronavirus?

Coronavirus patients may experience flu like symptoms such as a fever, cough, runny nose, or shortness of breath. In more severe cases, infection can cause pneumonia with severe acute respiratory distress.

How can I protect myself and my family?

The World Health Organisation and NSW Health both recommend basic hygiene practices as the best way to protect yourself from coronavirus.

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Good hygiene includes:

Source: 9News https://www.9news.com.au/world/coronavirus-wall-street-stocks-fall-after-rally/1768e13d-0b1a-4d81-8323-55b3cb76a256

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