Stocks finished with a hard landing Wednesday.
After having been down some in the morning, the losses accelerated in the late afternoon. Stocks fell about 5% Wednesday, with the S&P 500 falling 5% on the day, not easing at all from morning trading.
The 10 year treasury yield rose to above 1%, as investors sold stocks and bonds to raise cash, many on Wall Street assert. Bond prices were not exactly positioned to soar for the near term either.
Concern that the coronavirus could last for an unfathomably long time, and that so could a recession, overwhelmed the still-necessary stimulus the government may provide.
Here were the notable quotes from Wall Street on the market:
Mike Loewengart, head of investment strategy at E*Trade:
"The market’s cheers of a $1 trillion government injection into the economy has quickly dulled—renewed pandemic concerns have catapulted the market back into the red. It’s highly likely we’ll continue to see, as we did throughout the trade war, good news days followed by bad news days, and vice versa.”
Mark Haefele, chief investment officer of Global Wealth at UBS:
"We estimate that the US package would be sufficient to provide relief for around three to four months of "social distancing" measures, if the money is used correctly. The added money, used correctly, is still a question mark. Investors will also be hoping for further direct measures to protect employment as the policy response evolves.”
Brian Rose, Senior Economist of Global Wealth at UBS:
"Even though the budget deficit is already large, we do not expect politicians to hold back on spending, especially with the election a few months away. We will see additional rounds of stimulus if the economy needs it.”
Brian Nick, chief investment strategist at Nuveen:
"With monetary policy now largely spent — not just in the U.S., but around the world — investors’ attention will focus on the public health crisis and the fiscal policy response from the world’s governments. “We believe the depth and duration of the economic downturn will be determined by the healthcare policy measures to halt the spread of the Coronavirus. Mitigation factors to help contain the virus’ spread are having a dramatic negative effect on consumer and business spending, which we expect will spill over into the labor market.”