Why Steel Stocks Are Crashing Today
U.S. stock markets are continuing the declines seen in Europe overnight. While the major U.S. market indexes are experiencing general declines of 2% to 3%, steel stocks are showing outsized drops. United States Steel (NYSE: X), ArcelorMittal (NYSE: MT) and Cleveland-Cliffs (NYSE: CLF) are all down about 10% today.
Some European countries are seeing a new rise in COVID-19 cases, and the spread is expected to expand further, according to Reuters. "Countries like Spain have infection dynamics that are likely out of control," said German health minister Jens Spahn. Analysts are predicting this will lead to more restrictions to contain the spread, with negative economic impacts. Any hit to global economic recoveries will likely stifle the recent rebounds seen in basic materials industries like steel.
Source Fool.com
