Notably, investors might also blame the seasonal phenomenon here. September is historically considered the worst month for the stock market. Per the LPL Financial (NASDAQ:LPLA) data in a Yahoo Finance article, the S&P 500 has fallen about 1% on average in September since 1950.
The coronavirus pandemic continues to spread in the United States as the economy is seeing an improvement in outlook. The United States alone has recorded more than 6.3 million cases and a death toll of more than 191,000.
Meanwhile, in a historic move, the chief executives of nine drug companies have signed a joint pledge to not submit vaccine candidates for FDA approval before the successful demonstration of the safety and efficacy in large clinical trials. The companies signing the pledge included AstraZeneca (NYSE:AZN), Johnson & Johnson (NYSE:JNJ), Merck (MRCK), Moderna (NASDAQ:MRNA) and Novavax (NASDAQ:NVAX) along with those which are working in collaboration — Pfizer (NYSE:PFE) and BioNTech, and Sanofi (NASDAQ:SNY) and GlaxoSmithKline (NYSE:GSK). The pledge from the vaccine developers might lead to a delay in the release of the much-awaited coronavirus vaccines.
Also, AstraZeneca, which is developing the coronavirus vaccine in partnership with Oxford University, recently put a hold on global trials, including the late-stage trials. Some unexplained illness observed in a study participant is being considered the reason behind it. Notably, the company is one of the three vaccine developers to begin the Phase 3 trials, which were being conducted in the United States, Britain, Brazil and South Africa. This again has sparked fears among investors regarding the uncertainty of a vaccine introduction.
Investors also seem to be worried about the approaching U.S. Presidential elections. Thus, with elections approaching, investors need to prepare for increased volatility in the broader equities space. Notably, this election year could be worse as the coronavirus outbreak continues to spread.
It is being believed