U.S. stocks were getting shellacked, as investors fled the market as coronavirus cases globally ticked up and U.S. cases surged.
The S&P 500 fell 7%. The Dow Jones Industrial average fell 7.29% and the Nasdaq fell 6.86%. The 10 year treasury yield fell to an all-time low of 0.42%. Oil fell 21%, as OPEC said it’s unlikely to cut production to the extent it had planned on.
The S&P 500 is 18.4% below its all-time high, hit just in February. A 20% drop fro the high is a bear market.
Global cases of the coronavirus hit over 110,000. Hundreds of cases have cropped up in the U.S., namely in California and New York. This compares to just a few cases a week ago.
One of the market’s biggest fears on the virus is the spread of it. Many have said that this cold put the U.S.into recession, especially of the virus spreads to the U.S., which it now has.
Stocks halted trading at 9:35 in the morning.
One strategist sees a short-term opportunity, although more bad news all keep stocks pressured again. “Given the historically oversold condition, the market is again set up for a “rip your face off bounce” before ultimately heading back t the low as the weaker economic data begins to emerge a few weeks from now,” said Cannacord Genuity Chief Markert Strategist Tony Dwyer.
The latest U.S. data reflected the economy before the virus came a real issue. GDP growth for the first quarter was 2.1% and jobs added were 273,0000, beating economists estimates of 174,000. Now, the market is on the edge of its seat for awful economic data ahead.
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