US Stock Crash! Dow Plummeted Over 1800 Points, Or Nearly 7%.

U.S. and European stock markets tumbled on Thursday. The Fed's negative expectations triggered a sell-off.

The European and American stock markets ushered in a very bad trading day on Thursday because of the negative prediction of the Federal Reserve to the US economy and signs of the two outbreak of the new crown pneumonia outbreak in many states in the United States, which made the global stock market under pressure.

First look at the US New York stock market, the three major stock index stocks fell sharply on Thursday, of which the Dow Jones Industrial Average fell more than 1800 points, or nearly 7%, while the other two big indexes fell by over 5%. The total number of new crown pneumonia cases in the United States is over 2 million, and many states have jumped after the restart. This has led to a large number of stock market sales, tourism and leisure stocks closely related to the epidemic, and aviation stocks fell on Thursday. In addition, energy stocks led the market in the face of the sharp drop in crude oil prices. The latest economic data seem to support the Fed's economic forecast. The number of Americans who first filed for unemployment last week was 1 million 542 thousand. Although the figure has declined for ten consecutive weeks, the number of unemployed people is still slowing. The recovery of the US economy will depend heavily on the rebound in the labour market.

Auto stocks led European market defensive buying to return to market

In Europe, the three major stock markets in London, France, Paris and Germany, Frankfurt, fell sharply, down by 4%. Auto stocks fell on Thursday, with reports that the merger of Fiat Chrysler and Peugeot Citroen will face an antitrust investigation by the European Union, both of which have fallen by more than 7%. In addition, the French automaker, Renault, fell 14%. The company chairman said on Thursday that Renault did not consider nationalization, and the company received a 5 billion euro loan from the French government. Health care shares in the euro area fell the smallest on Thursday. Defensive purchases are returning to the market due to concerns about the second wave of new crown pneumonia.

Worries about demand trigger a sharp fall in oil prices, and international gold prices stabilize.

Crude oil prices fell sharply on Thursday. The Federal Reserve's forecast of the economic recession, coupled with the rise in new cases of new crown pneumonia in the world, once again raised concerns about the demand for crude oil, and the US WTI light crude oil futures and Brent crude futures both fell by more than 7%. Although the US dollar was strong, the rise in market risk aversion supported gold prices, and gold futures in August rose to $1739.80 an ounce.