New COVID-19 spikes could hurt local economy

Published: Jun. 25, 2020 at 6:27 PM CDT
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Certain states are announcing the possibility of re-closing businesses following spikes in COVID-19 cases.

Experts say the stock markets are reacting to the news.

While North Dakota coronavirus numbers have seen a slowdown, doctors say the possibility of another spike is still possible.

This could be bad news for high-contact business owners.

New spikes in COVID cases are causing some states to rethink lifting stay at home orders and business closures.

Impacting the stock market just weeks and days after many returned to work.

"We saw the market sell off because the concerns of some hot spots in the country as well as the news media reporting there are going to be new stay at home or shelter in place orders if the spikes continue. So, when the market hears that they don't like it. The market doesn't like uncertainty," said Securian Financial Services Advisor David Wald.

The uncertainty caused various sectors of the market to tumble Wednesday.

In North Dakota, experts say a fresh round of closures would adversely impact businesses trying to rebuild.

"You would see those high contact businesses really being forced to undergo a second round of closures and a second round of impacts to the bottom line, to their employees. It would not be healthy," said Bismarck Mandan Chamber EDC President Brian Ritter.

Governor Doug Burgum released a statement saying the state is moving forward with optimism. Yet, he's prepared to conduct individual and temporary closures of schools, businesses or manufacturing plants if they experience a significant hot-spot outbreak.

"A county by county approach to any future hotspot or flare up does offer a sense of security for businesses because they can operate knowing that what happens in one part of the state may not necessarily mean their closure," Ritter said.

Brian Ritter says the governor's approach would allow the hotspot area to control the virus while other state businesses could continue to rebuild.

David Wald says he projects market volatility will continue until there's a cure to the virus or cases significantly decrease.