After a couple of weeks of excellent performance by the stocks, this Friday each of the heavyweight stocks of the US hit a red brick wall. We cannot say that this was completely unexpected, at the same time such a drop in stocks has led the investors into complete instability. The biggest of the indices took a drop in the second half of the day and though the market rebounded later in the day, it failed to end amidst the green.
Here’s what happened in the market –
The DOW faced a steep drop of 227.6 points or 0.78% to end the day at 28,992.41 points. On the other hand, the tech-heavy Nasdaq Composite Index slipped 1.79%, to sum up the day at 9576.59 points. No index could be spared from the wave of red in the stock market on Friday, as a result, the S&P 500 index went down by 1.05% to close the day with 3337.75 points. The sudden upsurge in the number of coronavirus cases left the investors moving away from stocks and shifting to binds aggressively.
30–year–old rate drops to its lowest
The National Health Commission from China declared that there were 800 new cases of Coronavirus while South Korea reported 200 cases of the virus. The sudden increase in the number of cases had a great impact on the sentiment of the market. Such a situation has led the investors to plow money on Gold and government bonds which are a lot stable and safe investments during these testing times.
The FAANG drop
FAANG- Facebook, Amazon, Apple, Netflix and Google Parent company Alphabet, all of these major tech stocks ended the day with a steep drop of 1.5%-2.7%. Microsoft, on the other hand, was the significant stock in the DOW index which lost 3.16% on the day.
What happens next in the US stock market remains a question from every investor. However, a lot of this depends heavily on the spread of coronavirus in the Chinese mainland. If numbers keep increasing, the supply chain will further get hampered due to lack of production and this will, in turn, hit the stock market on the belly. To keep a track of the latest stock market reports and analysis, reach out to us right now with your contact info!