3/24/20 Market Notes
It was another wild ride on Wall Street, as stocks initially gained ground before reversing course and falling sharply. A late day rally did limit losses, none-the-less the red ink was abundant. The Dow Jones Industrial Average lost 3.04%, while the S&P had a similar 2.93% loss. The NASDAQ only declined 0.27%, while the small cap Russell 2000 index ended flat. The benchmark Ten Year Treasury yield traded below 0.70% before settling at 0.775%, while oil prices gained nearly 3% to end at $23.28 per barrel. Gold prices rose nearly 5% to $1,560 and the U.S. dollar was mixed. The culprit for the wide swings…Washington D.C., where Republicans and Democrats were unable to come to terms with a much needed fiscal stimulus plan Overnight the prospect for coordinated fiscal and monetary stimulus did improve, causing European markets to rise by more than 5% on average, and Asian bourses to gain between 2 ¼% (Shanghai) and 7 ½% (NIKKEI). Similarly, pre market U.S. equity futures have hit ‘limit up’ indicating a 5%+ rise at the open. Of course, as we have all witnessed over the past several weeks, the open and the close can look very differently, as such we will have to wait and see how the day evolves. Today marks the first day when market participants get March economic data, meaning that it is the first full data set that will reflect some of the early economic impact of the coronavirus. Shortly after the opening bell rings at the New York Stock Exchange (which is now closed and only trading electronically), the Markit Manufacturing PMI and Markit Services PMI data will be released. Furthermore, tomorrow morning’s Weekly Jobless Claims will reflect last week’s activity, which included a lot of furloughing, temporary business closures and layoffs.
Disclosures: This market commentary is written by the 1879 Advisors and represents the views of 1879 Advisors. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.