Dow Jones' corrective recovery looks set for a greater fall

AS we enter into the second half of 2020, the Covid-19 pandemic and how it will affect the economy remain a the headline for many investors. Lockdowns were initiated in many countries after infection rates spiked across the world.

As a result, working from home became a popular norm, facilitated by video conferencing and communications technologies. Technology stocks such as Zoom and Facebook saw their share prices soar to new heights, which led the Nasdaq Composite to break beyond the 10,000 price level.

With the Covid-19 wreaking havoc on the global economy, the Dow Jones Industrial Average has recovered from a low of 18,213.65 after a strong sell-down ensued in February this year. Historically, the Dow Jones Industrial Average is the key leading benchmark indicator watched by large institutions while the S&P 500 and the Nasdaq Composite lag behind. However, the S&P 500 and the Nasdaq Composite Index have risen higher than the Dow Jones Industrial Average for the first time since 2019.