Markets have endured roller coaster ups and downs for weeks amid uncertainty over how much damage the outbreak of the new coronavirus will do to the global economy.
“One succumbs to the sheer fear of community spread, prospects of deep economic impact from a sharp drop off in demand for travel and seizures in supply-chains,” Varathan said in a commentary.
“The other is a strain that thrives on hopes of stimulus; be it frantic central bank rate cuts, the lull of liquidity infusions or more targeted fiscal offsets to provide pain relief,” he said.
These vicious swings are likely to continue, as long as the number of new infections continues to accelerate, many analysts and professional investors say. Thursday was the fourth straight day where the S&P 500 moved at least 2%, the longest such stretch since the summer of 2011.
The growing understanding that the spread of infections — and resulting damage to the economy — may not slow anytime soon is pulling sharply on markets. That pull has taken turns this week with the increasingly worldwide push that governments and central banks are trying to give markets through spending plans and interest-rate cuts.
The yield on the 10-year
“It’s been a roller-coaster market in recent days for equity investors, and today we appear to be on the downward leg for that ride,” said
But elsewhere in the world, the mood is darker. There are about 17 times as many new infections outside
The S&P 500 fell 3.4% to 3,023.94. It's now 10.7% below the record high it set on
Losses were widespread, and energy stocks in the S&P 500 dropped to their lowest level since
“The Western world is now following some of China’s playbook, closing schools and declaring a state of emergency for example, but there is a sense that this is too little, too late,” said
Travel-related companies fell again on worries that frightened customers won't want to confine themselves in planes or boats with others.
Some economists expect the
CURRENCIES: The dollar fell to
AP Business Writers