Stock Market falls again as Wuhan Coronavirus spreads
Stocks fell sharply Monday even after the Federal Reserve approved a massive monetary stimulus campaign to curb slower economic growth amid the Wuhan Coronavirus outbreak, dropping around 10%.
“The S&P 500 dropped 8.4% while the Dow Jones Industrial Average fell 2,083 points, or 9%. The Nasdaq Composite traded 8.2% lower. The major averages were off their session lows, however. The S&P 500 fell as much as 11.4% while the Dow lost more than 12% earlier. The Nasdaq was briefly down 11.7%,” summarized CNBC.
“Monday’s losses put the Dow down 28% from its all-time high and the S&P 500 and Nasdaq more than 26% below their records last month. At one point, the Dow was down 30% from its record.”
The market instability has continued over the past couple of weeks, with no end in sight.
“Trading was halted for 15 minutes shortly after the open as a then-8.14% drop on the S&P 500 triggered a so-called circuit breaker. It was the third time in the last week a circuit breaker was triggered,” the article continued.
photo/ Gerd Altmann
“The Fed blasted its monetary bazooka for sure,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “This better work because I don’t know what they have left and no amount of money raining from the sky will cure this virus. Only time and medicine will.”
The Fed’s move, in tandem with headlines suggesting the White House is preparing a tax break for consumers and a bailout for the airlines industry, made some investors more optimistic on the market. Now that confidence is waning.
“This entire market would turn around in one second if the government came out and said, we’re going to provide business interruption insurance to companies that lose money in the second quarter if they don’t fire any workers,” Ricky Sandler, Eminence Capital CEO, told CNBC’s Scott Wapner.
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