Money Stocks close sharply lower after massive 3-day rally fizzles out
Cryptocurrencies see $93.5 billion wiped off value in 24 hours as bitcoin plunges 48%
The fall in cryptocurrency markets comes amid a broader sell-off in equities as governments worldwide continue to grapple with the spread of the new coronavirus.The market capitalization, or total value of the entire cryptocurrency market plummeted around $93.5 billion in the space of 24 hours as of 10:07 a.m. Singapore time, according to data from Coinmarketcap.com.
Stocks ended sharply lower Friday, giving back some of their strong gains from the previous three days to cap another volatile week on Wall Street.
Sentiment took a hit as investors focused back on the coronavirus outbreak as the U.S. became the country with the most confirmed cases. Stocks briefly got a little relief after the House passed the coronavirus aid bill.
The Dow closed down more than 900 points, or 4.1%, while the S&P 500 lost 3.3% and the Nasdaq slid 3.8%.
Stock futures drop — hit ‘limit down’ — even as Fed slashes rates; S&P 500 ETF down 10%
Stock futures were down sharply on Monday even after the Federal Reserve embarked on a massive monetary stimulus campaign to curb slower economic growth amid the coronavirus outbreak. Stock market futures hit “limit down” levels of 5% lower, a move made by the CME futures exchange to reduce panic in markets. No prices can trade below that threshold, only at higher prices than that down 5% limit. Dow Jones Industrial Average futures were off by more than 1,000 points, triggering the limit down level. S&P 500 and Nasdaq 100 futures were also at their downside limits.
Boeing dropped more than 8% to lead the Dow lower. Chevron and Exxon Mobil each fell more than 6%. Boeing fell after Treasury Secretary Steven Mnuchin said the airplane maker won’t seek a government bailout. Energy and industrials were the worst-performing sectors in the S&P 500 as they dropped 5.9% and 4.4%, respectively. Energy was pressured by a 5.6% drop in crude prices.
The Dow rallied more than 6% Thursday to post its biggest three-day gain since 1931. From Monday’s close through the end of Thursday’s session, the Dow was up more than 20%. The S&P 500 also rallied more than 6% and was up over 20% since Monday’s close as well.
“We believe medium-term risks are skewed to the downside after this rally,” Maneesh Deshpande, Barclays’ chief U.S. equity strategist, said in a note on Friday. “Two other uncertainties facing investors (the length of the economic quarantine required to contain the virus and the ultimate economic damage) remain unresolved.”
Dow sinks 900 points to cap Wall Street's worst week since 2008
Stocks attempted to rally Friday but failed, concluding one of the most volatile weeks ever on Wall Street as traders grappled with mounting fears over the coronavirus’ economic blow. The Dow closed down 913 points, or 4.5%, after rallying more than 400 points earlier in the day. The S&P 500 shed 4.3%. The Nasdaq ended 3.8% lower after jumping more than 2%.Sources told CNBC that Ronin Capital, a clearing firm at the CME Group, was unable to meet its capital requirements.
“Bear market ‘head-fake’ rallies are not uncommon,” Deshpande added. The bear runs that began in 2000 and 2007 both had head fakes of more than 20% before ending, Barclays data shows. The biggest bear market head fake came during the bear market that started in 1937, when stocks rallied more than 60% before falling again.
Despite the market’s strong three-day gains, the major averages were still more than 20% below the record highs set last month. Investors have been dumping riskier assets such as stocks amid uncertainty over the economic blow from the coronavirus.
Global cases of the coronavirus have surged to more than 542,700 with at least 85,996 in the U.S., according to data from Johns Hopkins University. The U.S. has now overtaken China as the country with the most confirmed cases in the world. President Donald Trump held a phone call with Chinese leader Xi Jinping, saying the two countries are “working closely together” to fight the pandemic. Meanwhile, UK Prime Minister Boris Johnson has tested positive for the coronavirus.
Stocks rise despite record surge in weekly jobless claims
Stocks opened higher on Thursday even after the release of record-breaking initial jobless claims sparked by the coronavirus pandemic. The Dow was up more than 500 points, or 2.7%. The S&P 500 gained 2.6% while the Nasdaq advanced 2.2%. Boeing, JPMorgan Chase and Intel drove the Dow’s gains, rising at least 3%. Industrials and health care were the best-performing sectors in the S&P 500 as the both traded more than 2% higher. The Labor Department said Thursday unemployment benefit claims soared to 3.28 million last week, a record. That number blew past the Great Recession peak of 695,000.
The Senate passed a $2 trillion coronavirus relief bill earlier this week, and the House approved the historically massive package on Friday, sending it to President Trump to be signed.
The outbreak has also led several businesses to close shop, sparking a massive surge in unemployment claims. The Labor Department reported that jobless benefit claims had soared to 3.28 million last week, easily eclipsing the previous record of 695,000.
“This is going to be an economic fallout. We’re seeing in two weeks what we would normally see maybe in a year and a half or two years,” said Gregory Faranello, head of U.S. rates trading at AmeriVet Securities.
Still, the major averages were up sharply for the week. The S&P 500 and Nasdaq have risen 10.7% and 10%, respectively, through Thursday’s close. The Dow has rallied 13.9%.
A big chunk of those gains were sparked by increasing expectations that lawmakers will push through a massive economic aid package. The Senate late Wednesday passed a $2 trillion bill aimed at mitigating the economic damage from the coronavirus outbreak.
Stock futures are flat as the Dow heads for its worst first quarter ever
Stock futures were flat to slightly positive in choppy trading early Tuesday morning, as the market tries to make back some of the deep losses triggered by the coronavirus pandemic. At 7:00 a.m. ET, futures on the Dow Jones Industrial Average were 9 points lower, pointing to a slightly negative open. S&P 500 futures were also slightly negative and Nasdaq-100 futures pointed to small gains.The Dow jumped nearly 700 points on Monday led by an 8% pop in Johnson & Johnson after it announced a vaccine candidate for the coronavirus. The S&P 500 rallied 3.4%.
Ken Berman, strategist at Gorilla Trades, thinks the market lows could be retested, however.
“You could almost smell the burning shorts on Wall Street [Thursday], but as credit spreads remain wide, one has to wonder how much ‘real’ buying is behind this week moves, besides the bailout-induced short-covering,” he said.
The wild market swings come in a week when investors have been pulling money across the board and heading for the safety of cash.
Investors poured $259.8 billion into money market funds, a third consecutive week of record inflows, according to Refinitiv Lipper. At the same time, stock-based funds saw $13.7 billion in outflows. Taxable bond funds saw $62 billion in outflows while municipal bonds lost $13.7 billion, both records for two weeks in a row.
CNBC’s Yun Li contributed reporting.
Dow falls after a massive U.S. jobs decline .
Stocks fell slightly on Friday to end another volatile week of trading as investors weighed a massive drop in U.S. jobs along with a spike in oil prices. The Dow Jones Industrial Average traded more than 100 points lower, or 0.5%. The S&P 500 dipped 0.3% while the Nasdaq Composite slipped 0.1%.U.S. payrolls fell by 701,000 in March, marking the worst jobs report since 2009, while the unemployment rate jumped to 4.4%. However, the report failed to capture the full extent of the economic blow being dealt by the coronavirus outbreak. On Thursday, the Labor Department said jobless claims jumped by a record of 6.