U.S. markets flash across-the-board declines as coronavirus outlook worsens

[mia]

As the coronavirus upends more aspects of life in the United States, Wall Street’s only certainty is this: The uncertainty will continue.

The Dow Jones industrial average dropped more than 700 points Thursday, reversing course after an eye-popping rally Wednesday that was largely fueled on Joe Biden’s Super Tuesday victories and the likelihood of a moderate option to Sen. Bernie Sanders (I-Vt.) for the Democratic presidential nomination. It was the second rally this week to see the blue-chip index clip more than 4 percent. And just like before, investor euphoria quickly gave way to more jitters — and more losses.

“We are expecting more dramatic market swings up and down and would not be surprised if we test last Friday’s lows again,” said David Donabedian, chief investment officer of CIBC Private Wealth Management, which manages $62 billion, in an email. ”Volatility will be with us for a considerable period, given the election cycle and COVID-19. We expect that economic data over the next two to three months will get worse before it gets better.”

...The World Health Organization said Tuesday that covid-19, the disease caused by the virus, has killed about 3.4 percent of those diagnosed with the illness — a higher rate than estimated previously. But President Trump downplayed worries on Wednesday evening, telling Fox News that the 3.4 percent mortality rate announced by the World Health Organization was “false” and suggesting it was under 1 percent....

https://www.washingtonpost.com/business/2020/03/05/stocks-today-coronavirus-markets/

[beachbumbob]

1. the markets have not even started to be "impacted"

the realization of people staying home impacts 50% of the american economy

- restaurants
- concerts
- conventions
- hotels
- car sales
- gas station
- airlines
- cruises
- malls and stores
- schools
- colleges


then ALL the supporting busineses that support those where the bulk of people work.

The markets have not hit at all

[Cognitive_Resonance]

3. Agree. I'm afraid it's a matter of a few weeks at most before reality sinks-in, and we see

double-digit market plunges and trading halts. Delusional guests on the financial entertainment network are still talking about a V-shaped recovery. Greed doesn't give-up easily.

[beachbumbob]

5. include congnative dissonance as well. Once money managers truly look and see the impact

lots of diversions until too late.

[dalton99a]

4. +1

[Chainfire]

2. This rollercoaster

Is entirely indicative of the market's faith in the President's judgement and leadership. The markets are torn between the fear that the virus will be devastating to the economy greed that they may miss out making a dollar on "undervalued" stocks.

When you average the best case and the worst case scenarios the prognosis sucks. We are just putting our toes in the Coronavirus pool.

If you have faith that the Chinese reporting is correct and not doctored to help their economy, this is what the current graph looks like.
If China is hedging, the line would be much steeper. Of course we know that China would not be dishonest, just as we know that our own government is giving us the best and most current information available. The more Trump down plays the issue, the more uncomfortable I get.


https://www.statista.com/chart/20634/confirmed-coronavirus-cases-timeline/

[beachbumbob]

6. china has a problem with honesty and I believe they censor ALL info as EVERY dictorship does

but with the obvious impact, they can not cover it up 100%

[gratuitous]

7. Trump's fanboiz have staked everything on the stock market

And let's face it, it's the one and only achievement they can point to, even if Trump has minimal influence on the stock market's ups and downs. One of the reasons for the stock market's climb during Trump's tenure* is, of course, the 2017 tax cuts. They acted in much the same manner as giving a four year old a sugar donut. He'll run around in hyper mode from the sugar high for a while, then crash quite suddenly. The tax cut effect has run its course but now it's being compounded by the Covid-19 outbreak, which spells big trouble for the markets.

Even under the guidance of a competent team on the economy, avoiding a slump would be difficult. I don't think anyone has confused the Trump team with even the competence of the Keystone Kops. This doesn't bode well for the country, as Trump's temper tantrum over the mess he's created will only exacerbate the bad effects.

*It's important to note that the stock market under Obama did far better than under Trump, even as Obama had to address the near crash of the economy in 2008 bequeathed to him by the Bush II administration.