The major U.S. indexes weren't as volatile as they've been recently by the time markets closed Tuesday, but stocks still capped off their worst quarter since the 2008 financial crisis as a result of the novel coronavirus pandemic.
The S&P 500 finished the quarter down 20 percent, its largest decline since 2008, while the Dow Jones Industrial Average plunged 23 percent. You'd have to go back to 1987 and the Black Monday era to find a lower point for the index. The downturn, unsurprisingly, was global in scope — Stoxx Europe 600 had its biggest quarterly drop since 2002, and Japan's Nikkei Stock Average fell to 2008 levels, as well.
Analysts are hoping the long-term consequences more closely resemble 1987, which allowed for a quicker recovery. Still, Shawn Snyder, the head of investment strategy at Citi Personal Wealth Management, told The Wall Street Journal "we're really in unprecedented territory" where "there's still a huge amount of uncertainty." Read more at The Wall Street Journal. Tim O'Donnell
The Dow Jones Industrial Average plummeted nearly 1,700 points on Thursday following President Trump's announcement that travel from Europe will be suspended amid the global coronavirus outbreak.
The S&P 500 and Nasdaq Composite also sank 7 percent, triggering a "circuit breaker" to pause all trade at the New York Stock Exchange. The pause was also triggered on Monday for the first time since 2008 during the financial crisis.
"On Wednesday, the Dow ended its historic 11-year bull market run by closing in bear-market territory," writes CNBC, noting that Trump's later announcement was apparently "not specific enough" to reassure investors there is sufficient action to curb the economic effects of COVID-19.
Trump’s speech last night was supposed to calm markets and project stability. Seems it did the opposite. https://t.co/Lo4F12K5Pu
Treasury yields, oil prices, and stocks all plunged Friday afternoon after a week of mounting concerns over COVID-19 and its effect on the economy.
The Dow Jones Industrial Average dropped about 255 points to close a week of ups and downs, while the S&P 500 went down 1.7 percent and the Nasdaq Composite went down 1.9 percent. The indexes did all show gains from last week's record-breaking plunge.
Oil prices took a major dip of $4.72 per barrel as Russia and OPEC failed to come to a production agreement. Futures on the benchmark oil price of Brent crude settled Friday at $45.27, their lowest since 2017, The Wall Street Journal notes. Oil prices have fallen more than 20 percent since January.
Yields on 10-year Treasury bonds also fell below .7 percent for the first time ever on Friday before rebounding a tad to close at .71 percent. It's more than just a reaction to the Federal Reserve Board's emergency interest rate cut, one expert told the Journal — "This is a flight to quality first." Traders expect the Fed to instill further cuts in the next few months. Kathryn Krawczyk
The Dow Jones Industrial Average sank more than 700 points Thursday after the arrest of a top Chinese executive exacerbated concerns about the U.S. trade war with China.
In addition to the Dow falling 2.8 percent, the S&P 500 also fell 2.6 percent and the Nasdaq Composite fell 2 percent, CNN reports.
The Dow has plunged more than 1,500 points over the past two days after having started off the week up 300 points thanks to the United States and China announcing a 90-day tariff ceasefire, reports CNBC. But President Trump subsequently warned China that if a "fair" trade deal between the two countries is not reached in that time, he would reimpose tariffs, dubbing himself a "Tariff Man."
The Dow fell 800 points that afternoon, and matters were only made worse when Huawei CFO Meng Wanzhou was arrested Thursday morning in Canada at the request of the United States. Experts say the already fragile trade truce could be upended by the move. "We think this will force China to take a more aggressive and confrontational approach with the U.S.," Brown Brothers Harriman's global head of currency strategy said of the arrest, per CNN. Brendan Morrow