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U.S. markets tank as coronavirus outlook worsens
Source: Washington Post
U.S. markets tank as coronavirus outlook worsens
The Dow skids 970 points as investors race for the safety of U.S. debt, extending a punishing market run
By Taylor Telford and Thomas Heath
3/5/2020, 5:56:49 p.m.
Economic fears about the coronavirus weighed on U.S. stocks on Thursday, shaking investors who are desperate for clarity on the growing global outbreak.
The Dow Jones industrial average closed down almost 970 points to Thursday as investors fled stocks and headed for the safety of U.S. debt. The Dow’s 3.6 percent drop canceled out most of Wednesday’s eye-popping rally, and was in line with the punishing sell-offs that have dominated trading over the past two weeks as the outbreak threatens to grind down global economies. The tech-heavy Nasdaq composite also closed down 3.10 percent.
All 11 Standard & Poor’s 500 sectors turned negative, with financials, industrials and energy the worst performers. All 30 Dow blue-chip stocks were in the red. United Technologies, aerospace giant Boeing, JP Morgan Chase and Goldman Sachs were among the Dow’s biggest drags. Profits for financial firms decline in a low-interest rate environment.
The flight to debt sent the yield on the 10-year U.S. Treasury — a global financial mainstay — to record lows. The trajectory could be an ominous sign of a weakening economy, because a low yield can indicate a lack of confidence in economic growth. Yields decline as bond prices rise. Gold, another safe haven, climbed 1.5 percent. Meanwhile, mortgage rates also hit record lows.
-snip-
The Dow skids 970 points as investors race for the safety of U.S. debt, extending a punishing market run
By Taylor Telford and Thomas Heath
3/5/2020, 5:56:49 p.m.
Economic fears about the coronavirus weighed on U.S. stocks on Thursday, shaking investors who are desperate for clarity on the growing global outbreak.
The Dow Jones industrial average closed down almost 970 points to Thursday as investors fled stocks and headed for the safety of U.S. debt. The Dow’s 3.6 percent drop canceled out most of Wednesday’s eye-popping rally, and was in line with the punishing sell-offs that have dominated trading over the past two weeks as the outbreak threatens to grind down global economies. The tech-heavy Nasdaq composite also closed down 3.10 percent.
All 11 Standard & Poor’s 500 sectors turned negative, with financials, industrials and energy the worst performers. All 30 Dow blue-chip stocks were in the red. United Technologies, aerospace giant Boeing, JP Morgan Chase and Goldman Sachs were among the Dow’s biggest drags. Profits for financial firms decline in a low-interest rate environment.
The flight to debt sent the yield on the 10-year U.S. Treasury — a global financial mainstay — to record lows. The trajectory could be an ominous sign of a weakening economy, because a low yield can indicate a lack of confidence in economic growth. Yields decline as bond prices rise. Gold, another safe haven, climbed 1.5 percent. Meanwhile, mortgage rates also hit record lows.
-snip-
Read more: https://www.washingtonpost.com/business/2020/03/05/stocks-today-coronavirus-markets/
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