Dow Drops 900 as US Virus Cases Top 100,000

Wall Street stocks tumbled on Friday, ending a massive three-day surge after doubts about the fate of the U.S. economy resurfaced and the number of coronavirus cases in the country climbed.

U.S. stocks deepened their losses late in the session, even after the House of Representatives approved a $2.2 trillion aid package – the largest in American history – to help people and companies cope with an economic downturn caused by the coronavirus outbreak and provide hospitals with urgently needed medical supplies.

The United States has surpassed China and Italy as the country with the most coronavirus cases. The number of U.S. cases passed 100,000, and the death toll exceeded 1,500.

“We have still not fully understood the degree of the economic impact,” warned Massud Ghaussy, senior analyst at Nasdaq IR Intelligence in New York.

“Currently, from a policymaker’s perspective, it’s a relative balance between managing the spread of the virus and opening the economy.”

After the market closed, President Donald Trump signed the stimulus package into law.

The bill, along with unprecedented policy easing by the Federal Reserve, helped the S&P 500 surge 10.2% for the week, its best week since 2009. But the U.S. stock market benchmark is still down about 25% from its February high.

In its strongest three-day performance since 1931, the Dow surged 21% in three straight days through Thursday, establishing it in a bull market, according to one widely used definition. Even after Friday’s drop, the Dow ended 12.8% higher, its best week since 1938.

Many investors see a strong risk the market could fall deeply again as coronavirus infections increase and more people die, however.

“Next week will depend on what happens over the weekend,” said Lindsey Bell, chief investment strategist at Ally Invest. “If there is a major acceleration over the weekend of coronavirus cases in

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Wall Street tumbles after US tops world in COVID-19 cases

New York, March 28 (IANS) US stocks ended significantly lower amid the fast-growing spread of coronavirus in the country.

On Friday, the Dow Jones Industrial Average slumped 915.39 points, or 4.06 per cent, to 21,636.78. The S&P 500 decreased 88.60 points, or 3.37 per cent, to 2,541.47. The Nasdaq Composite Index shed 295.16 points, or 3.79 per cent, to 7,502.38, Xinhua news agency reported.

10 of the 11 primary S&P 500 sectors traded lower, with energy down 6.93 per cent, becoming the worst-performing group. Utilities climbed 0.53 per cent, the only gainer among the sectors.

The United States became the country with the most COVID-19 cases worldwide on Thursday afternoon US Eastern Time, according to Johns Hopkins University.

As of 2 p.m. Eastern Time on Friday (1800 GMT), there were 94,238 confirmed cases in the United States, with 1,438 deaths, data from the university’s Center for Systems Science and Engineering showed.

A shocking number of Americans applied for jobless benefits last week due to the coronavirus outbreak.

US initial jobless claims, a rough way to measure layoffs, were registered at 3,283,000 in the week ending March 21, an increase of 3,001,000 from the previous week’s revised level, the Department of Labor reported Thursday. The reading easily crushed the previous record rise of 695,000 in October 1982.

Following a Senate approval earlier this week, the US House of Representatives on Friday passed a US $2 trillion COVID-19 stimulus package by voice vote, sending it to President Donald Trump for signature.

The bill, aimed at cushioning the economy from COVID-19 ravages, will provide small businesses emergency loans, business tax breaks, expanded unemployment benefits, more than US $1,000 direct payments for working Americans, government aid for industries such as airlines and hotels, as well as more support for hospitals and state and local

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Wall Street tumbles as U.S. virus cases pass 100,000

(Reuters) – Wall Street stocks tumbled on Friday, ending a massive three-day surge after doubts about the fate of the U.S. economy resurfaced and the number of coronavirus cases in the country climbed.

U.S. stocks deepened their losses late in the session, even after the House of Representatives approved a $2.2 trillion aid package – the largest in American history – to help people and companies cope with an economic downturn caused by the coronavirus outbreak and provide hospitals with urgently needed medical supplies.

The United States has surpassed China and Italy as the country with the most coronavirus cases. The number of U.S. cases passed 100,000, and the death toll exceeded 1,500.

“We have still not fully understood the degree of the economic impact,” warned Massud Ghaussy, senior analyst at Nasdaq IR Intelligence in New York.

“Currently, from a policymaker’s perspective, it’s a relative balance between managing the spread of the virus and opening the economy.”

After the market closed, President Donald Trump signed the stimulus package into law.

The bill, along with unprecedented policy easing by the Federal Reserve, helped the S&P 500 .SPX surge 10.2% for the week, its best week since 2009. But the U.S. stock market benchmark is still down about 25% from its February high.

In its strongest three-day performance since 1931, the Dow surged 21% in three straight days through Thursday, establishing it in a bull market, according to one widely used definition. Even after Friday’s drop, the Dow ended 12.8% higher, its best week since 1938.

Many investors see a strong risk the market could fall deeply again as coronavirus infections increase and more people die, however.

“Next week will depend on what happens over the weekend,” said Lindsey Bell, chief investment strategist at Ally Invest. “If there is a major acceleration

Read More Here...

Wall Street tumbles as U.S. virus cases pass 100,000

(Reuters) – Wall Street stocks tumbled on Friday, ending a massive three-day surge after doubts about the fate of the U.S. economy resurfaced and the number of coronavirus cases in the country climbed.

U.S. stocks deepened their losses late in the session, even after the House of Representatives approved a $2.2 trillion aid package – the largest in American history – to help people and companies cope with an economic downturn caused by the coronavirus outbreak and provide hospitals with urgently needed medical supplies.

The United States has surpassed China and Italy as the country with the most coronavirus cases. The number of U.S. cases passed 100,000, and the death toll exceeded 1,500.

“We have still not fully understood the degree of the economic impact,” warned Massud Ghaussy, senior analyst at Nasdaq IR Intelligence in New York.

“Currently, from a policymaker’s perspective, it’s a relative balance between managing the spread of the virus and opening the economy.”

After the market closed, President Donald Trump signed the stimulus package into law.

The bill, along with unprecedented policy easing by the Federal Reserve, helped the S&P 500 .SPX surge 10.2% for the week, its best week since 2009. But the U.S. stock market benchmark is still down about 25% from its February high.

In its strongest three-day performance since 1931, the Dow surged 21% in three straight days through Thursday, establishing it in a bull market, according to one widely used definition. Even after Friday’s drop, the Dow ended 12.8% higher, its best week since 1938.

Many investors see a strong risk the market could fall deeply again as coronavirus infections increase and more people die, however.

“Next week will depend on what happens over the weekend,” said Lindsey Bell, chief investment strategist at Ally Invest. “If there is a major acceleration

Read More Here...

Stock markets cap first winning week since February despite snapping rally

TORONTO — Canada’s main stock index capped its first winning week since mid-February despite snapping a three-day rally as cases of COVID-19 continue to soar.

The S&P/TSX composite index closed down 683.43 points, or 5.1 per cent, at 12,687.74. The market gained seven per cent in the week thanks to a 19.1 per cent increase over three days. But it still remained more than 29 per cent off the peak set Feb. 20.

“It’s been a nice week, but it’s been a pretty brutal month,” said Macan Nia, senior investment strategist at Manulife Investment Management.

In New York, the Dow Jones industrial average was down 915.39 points at 21,636.78. The S&P 500 index was down 88.60 points at 2,541.47, while the Nasdaq composite was down 295.16 points at 7,502.38.

It’s not unexpected that the very short winning streak would come to an end after the largest increase since the early 1930s, said Nia.

“We saw a bit of a relief rally because markets don’t move in straight lines and one should probably anticipate there to be bear market rallies that we saw over the past couple days during these prolonged dislocations,” he said.

In the 11 bear markets since the 1970s, six included a recession where the average selloff from the peak was 40 per cent, about 20 per cent more than when there’s no recession.

A material impact on economic activity is expected with mass parts of the world in quarantine to stem the spread of the novel coronavirus, said Nia.

“History would suggest and probability would suggest that there’s likely more downside ahead before we can create a sustainable bottom and a sustainable rally coming out of that.”

He said the upswing is unlikely until there’s more clarity that the virus has peaked and the curve has flattened.

The Canadian dollar gained to trade

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Stocks – Late Selling Hits Dow as U.S. Sees Surge in Covid-19 Infections

Investing.com – Wall Street plunged amid late selling Friday, even as the United States’ economic battle against the Covid-19 pandemic received a major boost on the House of Representatives passing the $2 trillion economic rescue package.

The Dow fell 4.06%, or 915.39 points. The S&P 500 lost 3.37% and the Nasdaq Composite fell 3.79%.

President Donald Trump signed the $2 trillion stimulus package just after market close. It’s the largest aid package in U.S. history and one that many hope will go a long way to ensuring the economy bounces back quickly from a widely-expected recession.

The key measures of the bill include fiscal support to small as well as large businesses, and checks to ordinary Americans at time when the U.S. infections of Covid-19 have topped 90,000, above China’s 81,000 and Italy’s nearly 87,000.

The aviation sector, which is in desperate need of help, remained under pressure, with United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL) falling sharply on concerns the government support included in the stimulus bill will not offset a prolonged slump in travel demand.

Energy and technology stocks were among the biggest declines amid late-day selling as investors remain wary of holding onto bullish bets over the weekend amid the ongoing Covid-19 pandemic.

Energy slumped 7%, paced by a decline in oil prices on fears of deeper virus-led weakness in oil demand at a time when Saudi Arabia and Russia are engaged in a price war.

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