The U.S. stock market ended Friday at a less severe loss than it began, with some good news embedded into a a day that capped an ugly week.
The S&P 500 and Dow Jones Industrial Average, after starting the day down more than 3%, ended the day down 0.82% and 1.39%, respectively. The Nasdaq was in the green by 0.01%.
This concludes a week of selling, that has the S&P 500 deep into correction territory, as it’s down more than 14% from its all-time high.
The good news:
Microsoft (MSFT) - Get Report ended the day up 2.42% to $162 a share, still down 13.8% from its all-time high. It was richly valued after strong earnings before the selling began last Friday. And Apple (AAPL) - Get Report ended the day flat at $273, also in correction territory, down 16% from its all time high of $327, also after strong earnings.
Other good news came in the form of interest rates remaining low. While the rush into the safe 10-year treasury — now down to 1.16% — signifies fears of economic growth related to the Coronavirus, the Federal Reserve says it will “act as appropriate,” as it monitors the global economic impact of the virus. That’s code for a rate cut, should the U.S. economy be impacted by the rest of the world.
Wall Street sees a buying opportunity.
“Remember that the overall economic backdrop is still healthy for the U.S., but when fear grips, that doesn’t matter,” said LPL Financial Senior Market Strategist Ryan Derrick.
“It remains our belief that the impact to the economy will be severe, but not enough to create a recession,” said Chris Zaccarelli, chief investment officer of Independent Advisor Alliance. “This correction is likely to prove a buying opportunity for calendar year 2020.”
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