It was a wild trading day!
Stocks were down around 2.0% at the open, then continued to slide.
Then a little more than an hour into the trading session, the S&P was down 3.5%!!!
Stocks rallied mid-day and tried to fill today’s gap. And at one point the S&P was down just 0.6%.
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One Finance PhD is calling for the end of this 11-year bull market – but not because of coronavirus. He says, “All of the great crashes in history have this in common. We saw it with tech stocks in 2000… housing in 2008… even Bitcoin in 2018. These bubbles look different to the untrained eye – but they all share the exact same trigger.”
But in the afternoon things got worse.
Stocks drifted back towards session lows. And then in the last 15 minutes of trading stocks plummeted.
The S&P closed below 2,900 for the first time since mid-October. But even worse, with today’s losses the S&P has entered in correction territory, down 12.2% since making a record high on February 19th.
The DOW finished at its lowest level since August of last year. The DOW is also in correction territory, down 12.2% after losing 3,800 points in just two weeks.
Here’s where the major indices ended the day:
- The S&P finished with a 4.4% loss. Down 138 points, the S&P ended at 2,979.
- The DOW ended lower by 4.4%. Dropping 1191 points the DOW closed at 25,767.
- The NASDAQ was down 4.7%. With a 417 point loss, the NASDAQ finished at 8,562.
Crude Oil (CL) finished lower for the 5th day straight and actually traded below $46 for the first time since December 2018. Down 3.2%, Crude Oil finished the day at $47.17 a barrel.
Last night, President Trump tried to tame coronavirus concerns by saying that the risk to people in the U.S. is still “very low.” He also put Vice President Mike Pence in charge of the coronavirus response.
But this didn’t do much to calm coronavirus fears.
Especially since there was news that someone in Northern California now has coronavirus. And the person got the virus without any travel to China or interaction with traveler’s to China. And on Thursday, California’s governor announced that the state is monitoring 8,400 people for the virus.
Goldman Sachs put coronavirus concerns in perspective today, when their Chief Equity Strategist said “US companies will generate no earnings growth in 2020.” Because of “the severe decline in Chinese economic activity in 1Q, lower end-demand for US exporters, disruption to the supply chain for US firms, a slowdown in US economic activity, and elevated business uncertainty.”
Today the biggest losers in the DOW were Apple (AAPL), down 6.7%, and Intel (INTC), down 6.4%.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
Source: RockwellTrading by Markus Heitkoetter | Original Link