Despite the plans to reopen and boost many countries' economies, stock markets went down due to the fears of a second wave of the coronavirus outbreak. When the COVID-19 pandemic began in the United States, officials have warned about the possible second blow of the virus. If this happens, it can be far worse than the first.
According to OANDA's Craig Erlam, the possibility of having a second wave of the coronavirus infections keep the investors on edge. South Korea, China, and, possibly, Germany are being hit by the virus again as the confirmed cases once again soar high.
Hence, Erlam believed it should be an example for other countries that are planning to reopen their economy and remove their imposed restrictions. The opening of the Dow Jones index on the Wall Street also started low, AFP noted.
Although some markets in Asia closed on a high, Shanghai gave up early gains to "end marginally lower." This is despite the People's Bank of China's promise to "deliver more powerful policies" to support the country's economy.
Hence, observers warned that the global outlook would remain gloomy due to the fears of the second wave of the coronavirus outbreak. In the U.S., there were 20.5 million people who were laid off in April. So, the unemployment rose to a staggering 14.7 percent--the highest since the Great Depression.
Ever since the outbreak began in the country, officials already foresaw the possibility of having a second wave of the virus. Some even said that it could be worse than the first one.
Dr. Ali Khan, former director of the Office of Public Health Preparedness and Response at the Centers for Disease Control and Prevention, seemed to be sure that a second blow of the infection would happen. In an interview with NPR's Morning Edition, he said that many people in the U.S. are still at risk of contracting the disease.
It could even be a "mountain range" than a "big peak." Although the disease is widely called a pandemic, Khan revealed that it had "multiple hundreds of outbreaks" in the U.S. happening at the same time. Hence, if the second wave occurs, a lot of separate outbreaks may begin.
With the plan to reopen the economy, Khan advised that implementing additional protocols is necessary. This move will help to minimize the risk of having a second wave of coronavirus outbreak through a community transmission. This can be avoided if the government will ramp up testing and contract tracing, and if people will continue to adhere to the public health practices, like hand washing, social distancing, and wearing masks.
