Dow ends sharply lower, but books biggest weekly gain since 1938 in bounce after coronavirus-inspired rout

U.S. stock indexes ended sharply lower Friday, failing to get a lasting lift from approval by Congress of a $2 trillion economic stimulus package to counter the effects of the coronavirus pandemic, but equities booked double-digit weekly gains to take back a chunk of losses seen this month.

How are benchmarks performing?

The Dow Jones Industrial Average DJIA, -4.05% dropped 915.39 points, or 4.1%, to end at 21,636.78, while the S&P 500 index SPX, -3.36% fell 88.60 points, or 3.4%, to 2,541.47. The Nasdaq Composite Index COMP, -3.78% lost 295.16 points, or 3.8%, to finish at 7,502.38.

On Thursday, the Dow marked its best three-day gain since 1931, while it was the best such gain for the S&P since 1933. Despite Friday’s decline, the Dow booked a 12.8% weekly advance, its strongest since 1938, while the S&P 500 rose 10.3% for its biggest such jump since 2008. The Nasdaq’s 9.1% weekly rise was the biggest since March 2009.

Read:The Dow’s 21% surge in 3 days puts it back in a bull market—here’s why the coronavirus crisis makes it feel utterly bearish

Since their peaks, the Dow still stands 26.8% below its record high, the S&P 500 is down 25% from its Feb. 19 peak and the Nasdaq Composite Index COMP, -3.78% is off 23.6% from its all-time high.

What’s driving the market?

The week’s sharp stock-market rebound was attributed part to optimism over the U.S. fiscal stimulus plan in concert with aggressive monetary policy easing by the Federal Reserve and other major central banks. Analysts, however, warned that stocks could still see significant pressure

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Dow ends sharply lower, but books biggest weekly gain since 1938 in bounce after coronavirus-inspired rout

U.S. stock indexes ended sharply lower Friday, failing to get a lasting lift from approval by Congress of a $2 trillion economic stimulus package to counter the effects of the coronavirus pandemic, but equities booked double-digit weekly gains to take back a chunk of losses seen this month.

How are benchmarks performing?

The Dow Jones Industrial Average DJIA, -4.05% dropped 915.39 points, or 4.1%, to end at 21,636.78, while the S&P 500 index SPX, -3.36% fell 88.60 points, or 3.4%, to 2,541.47. The Nasdaq Composite Index COMP, -3.78% lost 295.16 points, or 3.8%, to finish at 7,502.38.

On Thursday, the Dow marked its best three-day gain since 1931, while it was the best such gain for the S&P since 1933. Despite Friday’s decline, the Dow booked a 12.8% weekly advance, its strongest since 1938, while the S&P 500 rose 10.3% for its biggest such jump since 2008. The Nasdaq’s 9.1% weekly rise was the biggest since March 2009.

Read:The Dow’s 21% surge in 3 days puts it back in a bull market—here’s why the coronavirus crisis makes it feel utterly bearish

Since their peaks, the Dow still stands 26.8% below its record high, the S&P 500 is down 25% from its Feb. 19 peak and the Nasdaq Composite Index COMP, -3.78% is off 23.6% from its all-time high.

What’s driving the market?

The week’s sharp stock-market rebound was attributed part to optimism over the U.S. fiscal stimulus plan in concert with aggressive monetary policy easing by the Federal Reserve and other major central banks. Analysts, however, warned that stocks could still see significant pressure

Read More Here...

Covid-19 weighs on investors as market surge comes to an end

It was the fastest rally seen in over nine decades, according to Bloomberg. But after going full speed ahead for three days, fatigue set in as the long-term outlook for the COVID-19 pandemic set in. Treasuries made some gains while oil plunged. At the opening bell, the Dow Jones Industrial Average dropped 655 points or 2.9 percent The S&P 500 slid 2.5 percent along with the Nasdaq Composite. Analysts blame surging unemployment and coronavirus cases in the U.S., even as the House of Representatives passed the $2 Trillion stimulus package this morning, sending it to President Donald Trump to be signed. “Bear market ‘head-fake’ rallies are not uncommon,” Maneesh Deshpande of Barclay’s tells CNBC. Big uncertainties such as how long quarantines will have to last amid the coronavirus outbreak continue to weigh on investors, he added. The bear runs that began in 2000 and 2007 both had head fakes of more than 20 percent before ending, Barclays data shows. It was revealed on Thursday that unemployment claims spiked to almost 3.3 million last week, dwarfing the previous record of 700,000 set in 1982. Market commentators are not real optimistic. “The situation is about to get worse in the coming weeks,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, warned in a morning email, citing the surges in US unemployment and coronavirus cases, according to Markets Insider. “If recovery is not as swift as hoped for, equity markets will suffer another hit,” Neil Wilson, chief market analyst for Markets.com, said in a morning note. In other news, Oil prices tumbled, with West Texas Intermediate down 3.5 percent at 21.80 a barrel, and Brent crude down 4 percent at about $25.30. European equities dropped, with Germany’s DAX down 3.9 percent, Britain’s FTSE 100 down 5.6 percent, and the Euro Stoxx 50 down 4.4

Read More Here...

Covid-19 weighs on investors as market surge comes to an end

It was the fastest rally seen in over nine decades, according to Bloomberg. But after going full speed ahead for three days, fatigue set in as the long-term outlook for the COVID-19 pandemic set in. Treasuries made some gains while oil plunged. At the opening bell, the Dow Jones Industrial Average dropped 655 points or 2.9 percent The S&P 500 slid 2.5 percent along with the Nasdaq Composite. Analysts blame surging unemployment and coronavirus cases in the U.S., even as the House of Representatives passed the $2 Trillion stimulus package this morning, sending it to President Donald Trump to be signed. “Bear market ‘head-fake’ rallies are not uncommon,” Maneesh Deshpande of Barclay’s tells CNBC. Big uncertainties such as how long quarantines will have to last amid the coronavirus outbreak continue to weigh on investors, he added. The bear runs that began in 2000 and 2007 both had head fakes of more than 20 percent before ending, Barclays data shows. It was revealed on Thursday that unemployment claims spiked to almost 3.3 million last week, dwarfing the previous record of 700,000 set in 1982. Market commentators are not real optimistic. “The situation is about to get worse in the coming weeks,” Ipek Ozkardeskaya, senior analyst at Swissquote Bank, warned in a morning email, citing the surges in US unemployment and coronavirus cases, according to Markets Insider. “If recovery is not as swift as hoped for, equity markets will suffer another hit,” Neil Wilson, chief market analyst for Markets.com, said in a morning note. In other news, Oil prices tumbled, with West Texas Intermediate down 3.5 percent at 21.80 a barrel, and Brent crude down 4 percent at about $25.30. European equities dropped, with Germany’s DAX down 3.9 percent, Britain’s FTSE 100 down 5.6 percent, and the Euro Stoxx 50 down 4.4

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Stocks down on virus' economic toll; dollar falls further

NEW YORK (Reuters) – Stocks across the globe fell on Friday after a historic three-day run-up, as skittish investors kept indices on track for their worst monthly and quarterly performances since 2008, while the dollar fell by the most in any week since 2009.

Shares on Wall Street ended near Friday’s lows and the dollar fell further after the U.S. House of Representatives, as expected, approved a $2.2 trillion stimulus package, the largest in U.S. history. After the markets closed, President Donald Trump signed the bill into law.

The dollar’s slump was seen partly as a sign that central bankers have been successful in easing stress in the money markets.

Market volatility is expected to persist as the coronavirus pandemic that triggered closures in economies worldwide remains very much a threat.

The United States surpassed two grim milestones as virus-related deaths soared past 1,200 and it became the world leader in confirmed cases. Worldwide, confirmed cases rose above 551,000 with nearly 25,000 deaths.

The stimulus “is not necessarily enough to make people say, ‘I’ve got to run out and buy stocks,’” said Rick Meckler, a partner at Cherry Lane Investments in New Jersey. “That’s going to take more time.”

Uncertainty over the overall human and economic toll was reflected in financial markets. MSCI’s gauge of global stocks rallied by the most in any week since December 2008, but is also poised for its largest month- and quarter- drops since 2008, during the height of the financial crisis.

Nervous investors supported demand for gold, whose prices jumped by the most in any week since 2008 despite a Friday decline.

The coronavirus infection rate is driving much of the market at a time of great uncertainty, said Yousef Abbasi, global market strategist at INTL FCStone Financial Inc in New York.

“My big

Read More Here...

Stocks down on virus' economic toll; dollar falls further

NEW YORK (Reuters) – Stocks across the globe fell on Friday after a historic three-day run-up, with indexes poised to close the month and quarter with starkly negative performances, while the dollar was on track for its biggest weekly decline in over a decade.

Shares on Wall Street pared losses and the dollar fell further after the U.S. House of Representatives, as expected, approved a $2.2 trillion stimulus package, the largest in U.S. history. The bill, already passed by the Senate, will now go to the president, who is expected to promptly sign it into law.

The weakening in the dollar was seen partly as a sign that central bankers have been successful in easing stress in the money markets.

The market volatility is expected to continue as the coronavirus pandemic that triggered closures in economies worldwide remains very much a threat.

The United States surpassed two grim milestones on Thursday as virus-related deaths soared past 1,000 and it become the world leader in confirmed cases. Worldwide, confirmed cases rose above 551,000 with nearly 25,000 deaths.

The stimulus “is not necessarily enough to make people say, ‘I’ve got to run out and buy stocks,’” said Rick Meckler, a partner at Cherry Lane Investments in New Jersey. “That’s going to take more time.”

The uncertainty over the overall human and economic toll was reflected in financial markets. MSCI’s gauge of global stocks was on track to post both its largest weekly percentage gain since 2008 and its largest monthly and quarterly drops since 2008.

The infection rate for the coronavirus is driving much of the market at a time of great uncertainty, said Yousef Abbasi, global market strategist at INTL FCStone Financial Inc in New York.

“My big hang-up here is when the curve does start to flatten, that doesn’t mean

Read More Here...

Stocks down on virus' economic toll; dollar falls further

NEW YORK (Reuters) – Stocks across the globe fell on Friday after a historic three-day run-up, with indexes poised to close the month and quarter with starkly negative performances, while the dollar was on track for its biggest weekly decline in over a decade.

Shares on Wall Street pared losses and the dollar fell further after the U.S. House of Representatives, as expected, approved a $2.2 trillion stimulus package, the largest in U.S. history. The bill, already passed by the Senate, will now go to the president, who is expected to promptly sign it into law.

The weakening in the dollar was seen partly as a sign that central bankers have been successful in easing stress in the money markets.

The market volatility is expected to continue as the coronavirus pandemic that triggered closures in economies worldwide remains very much a threat.

The United States surpassed two grim milestones on Thursday as virus-related deaths soared past 1,000 and it become the world leader in confirmed cases. Worldwide, confirmed cases rose above 551,000 with nearly 25,000 deaths.

The stimulus “is not necessarily enough to make people say, ‘I’ve got to run out and buy stocks,’” said Rick Meckler, a partner at Cherry Lane Investments in New Jersey. “That’s going to take more time.”

The uncertainty over the overall human and economic toll was reflected in financial markets. MSCI’s gauge of global stocks was on track to post both its largest weekly percentage gain since 2008 and its largest monthly and quarterly drops since 2008.

The infection rate for the coronavirus is driving much of the market at a time of great uncertainty, said Yousef Abbasi, global market strategist at INTL FCStone Financial Inc in New York.

“My big hang-up here is when the curve does start to flatten, that doesn’t mean

Read More Here...