The leading stock indexes of the US started on a low on Thursday and failed to post any gain throughout the day. On the contrary, the DOW Jones fell by a staggering 1147.53 points while all the other indexes faced a decline of around 3% approximately. The steep loss on Thursday wasn’t expected after a brilliant stock rally on Wednesday that saw DOW recording tremendous gains. Investors continue to shift to the so-called safe trade options which made this week the best for all utilities. On the other hand, the yield on 10-year Treasury slumped to a new low on the day.
All that happened on Thursday- The Timeline
The fear around coronavirus continues to grip investors and as a result, the DOW Jones index slipped by 969 points at the closing bell on Thursday. At a point in the day, the index was down by around 1100 points. The Nasdaq composite index dropped by 3.1% while the S&P 500 lost 3.4% on the day. All of these indexes were in correction territory by the end of the day and they ended around 10% below their recent high.
Experts report that the price of Gold will achieve new heights with the recent rate from the Fed. It is estimated that the Gold is about to attain its all-time high versus the dollar soon!
Anton Schultz of Mendon Capital Advisors said that those who feel that the central banks and Fed will be out of measures if they offer such rate cuts in the nascent stage of the downturn are wrong. As long as they print money, they will be able to offer numerous reliefs and measures to the economy and help it regain over time. The Fed is yet to buy any equities unlike other central banks and this is one major measure that they can use to boost the economy.
At the midday trading hours, losses started to take speed. 10 out of the 11 sectors of the S&P 500 were already down by almost 2%. The worst performers during this phase were the energy and financials as each of them took a slip of 5%. The utilities stood apart from every other sector as it lost only 1.7% which is the lowest for the day when compared to the losses of others.
The S&P 500 went down around 2.5% on Thursday but streaming platforms such as NETFLIX did post a gain of 1% even on this day! The Stocks that promote stay at home are showing promising gains due to the fear of coronavirus taking center stage and most people willing to stay indoors.