U.S. Stocks May Open Lower Following Spike In Jobless Claims

Stocks may move to the downside in early trading on Thursday as traders get their first official look at the economic impact of the coronavirus pandemic. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 174 points.

Early selling pressure may be generated following the release of a report from the Labor Department showing a record spike in first-time claims for unemployment benefits in the week ended March 21st.

The Labor Department said initial jobless claims skyrocketed to 3,283,000, an increase of 3,001,000 from the previous week’s revised level of 282,000.

Economists had expected jobless claims to spike to about 1.5 million from the 281,000 originally reported for the previous week.

With the record-breaking increase, the number of seasonally adjusted initial claims reached the highest level in the history of the seasonally adjusted series. The previous high was 695,000 in October of 1982.

While the jump in jobless claims was widely expected on Wall Street, the magnitude of the increase may still come as a shock to some investors.

Nonetheless, the negative sentiment may be partly offset by last night’s news that the Senate finally voted to approve a massive $2 trillion stimulus package in response to the coronavirus pandemic.

Shrugging off concerns among some Republican Senators about an expansion of unemployment benefits, the Senate eventually voted 96 to 0 in favor of the bill.

The bill now heads to the Democrat-controlled House, which will be under pressure to quickly send the legislation to President Donald Trump’s desk.

House Speaker Nancy Pelosi, D-Calif., said the House will take up the legislation on Friday with strong bipartisan support.

Stocks moved notably higher over the course of the trading session on Wednesday before giving back ground going into the close. The major averages pulled back sharply in late-day trading, with the tech-heavy Nasdaq sliding into negative territory.

The major averages subsequently finished the session mixed. While the Nasdaq fell 33.56 points or 0.5 percent to 7,384.30, the Dow surged up 495.64 points or 2.4 percent to 21,200.55 and the S&P 500 jumped 28.23 points or 1.2 percent to 2,475.56.

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Thursday. Japan’s Nikkei 225 Index plunged by 4.5 percent, while China’s Shanghai Composite Index fell by 0.6 percent.

The major European markets have also moved to the downside on the day. While the German DAX Index has tumble by 2.7 percent, the French CAC 40 Index is down by 2.4 percent and the U.K.’s FTSE 100 Index is down by 2.1 percent.

In commodities trading, crude oil futures are slumping $0.78 to $23.71 a barrel after rising $0.48 to $24.49 a barrel on Wednesday. Meanwhile, after tumbling $27.40 to $1,633.40 ounce in the previous session, gold futures are jumping $20.70 to $1,654.10 an ounce.

On the currency front, the U.S. dollar is trading at 109.67 yen compared to the 111.21 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.0943 compared to yesterday’s $1.0882.

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U.S. Futures Hold Gains; Japan Stocks Sink Further: Markets Wrap

Asian stocks opened mixed Tuesday after a rally in their U.S. counterparts, as investors assessed some glimmers of optimism in efforts to deliver rapid testing for the new coronavirus. Treasuries advanced.

The strongest equity gains were in Australia and South Korea, while Japan fell a second day. S&P 500 futures edged higher after the index climbed for the fourth time in five days with health-care shares among the biggest gainers. Crude stabilized after tumbling in New York Monday. The dollar held gains versus peers and gold dipped.

Global equities are on track to round out their worst quarter since the last three months of 2008 as investors grapple with the economic impact of the coronavirus spread. Meanwhile, President Donald Trump heeded advice from the government’s top doctors that re-opening the U.S. in two weeks risks greater loss of life and more U.S. states issued stay-at-home orders.

Still, traders continued to look for bright spots, such as in health-care companies that could produce products that help curb the outbreak. Johnson & Johnson jumped after the company said it would begin a $1 billion-plus effort with the U.S. government to make a vaccine against the virus.

These are the main moves in markets:

Stocks

  • S&P 500 futures rose 0.3% as of 9:11 a.m. in Tokyo. The S&P 500 Index climbed 3.4%.
  • Topix index fell 0.1%.
  • Australia’s S&P/ASX 200 Index added 3%.
  • South Korea’s Kospi index rose 1.5%.
  • Hong Kong’s Hang Seng Index contracts climbed 1.7%.

Currencies

  • The yen dipped 0.3% at 108.11 per dollar.
  • The offshore yuan was little changed at 7.1114 per dollar.
  • The euro was at $1.1029, down 0.2%.

Bonds

  • The yield on 10-year Treasuries fell about two basis points to 0.71%.
  • Australia’s 10-year bond yield rose five basis points to 0.83%.

Commodities

  • West Texas Intermediate crude rose 2.6% to $20.61 a barrel. It fell 5.7% in the previous session.
  • Gold slipped 0.3% to $1,617.16 an ounce.

— With assistance by Vildana Hajric, and Randall Jensen

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U.S. Stocks Close Notably Lower As Stimulus Bill Blocked In Senate

After coming under pressure early in the session, stocks fluctuated over the course of the trading day on Monday but largely remained firmly negative before closing notably lower.

With the continued drop on the day, the Dow and the S&P 500 tumbled to new three-year closing lows and the Nasdaq ended the session at its lowest closing level in over a year.

The major averages all closed in negative territory, although the Nasdaq posted a relatively modest loss. While the Nasdaq fell 18.84 points or 0.3 percent to 6,860.67, the Dow plunged 582.05 points or 3 percent to 18,591.93 and the S&P 500 plummeted 67.52 points or 2.9 percent to 2,237.40.

The lower close on Wall Street came as a massive fiscal stimulus bill once again failed to clear a procedural hurdle in the Senate.

In a largely party-line vote, Senators voted 49 to 46 in favor of the procedural motion, falling short of the 60 votes needed to advance the bill.

Most Democratic Senators voted against advancing the bill amid complaints that the legislation does too much to bail out companies and not enough to provide assistance to workers.

Senate Majority Leader Mitch McConnell, R-Ken., was harshly critical of Democrats for blocking the bill, while Senate Minority Leader Chuck Schumer, D-N.Y., expressed optimism a deal could still be reached as soon as today.

The lack of progress on Capitol Hill partly offset the positive sentiment generated by the Federal Reserve’s announcement of extensive new measures to support the economy during the coronavirus pandemic.

Citing the tremendous hardship being caused by the outbreak, the Fed said it is committed to using its full range of tools to support households, businesses, and the U.S. economy overall in this challenging time.

The measures announced today include an unlimited expansion of the Fed’s asset purchases, with the central bank saying it will purchase Treasuries and mortgage-backed securities “in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”

The Fed had previously announced it would purchase at least $500 billion of Treasury securities and at least $200 billion of mortgage-backed securities.

The latest developments come as data from Johns Hopkins University shows the number of confirmed coronavirus cases has climbed above 370,000 worldwide, with confirmed cases in the U.S. jumping above 40,000.

Sector News

Telecom stocks showed a substantial move to the downside on the day, dragging the NYSE Arca North American Telecom Index down by 8.2 percent to its lowest closing level in over seven years.

Significant weakness was also visible among housing stocks, as reflected by the 7.5 percent nosedive by the Philadelphia Housing Sector Index. The index ended the day at a five-year closing low.

Banking, natural gas, commercial real estate and utilities stocks also saw considerable weakness, moving lower along with most of the other major sectors.

On the other hand, gold stocks moved sharply amid a spike by the price of the precious metal. With gold for April delivery skyrocketing $83 to $1,567.60 an ounce, the NYSE Arca Gold Bugs Index surged up by 6.5 percent.

Semiconductor stocks also saw significant strength on the day, helping to limit the downside for the tech-heavy Nasdaq.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Monday. China’s Shanghai Composite Index plunged by 3.1 percent and Australia’s S&P/ASX 200 Index tanked by 5.6 percent, although Japan’s Nikkei 225 Index bucked the downtrend and jumped by 2 percent.

The major European markets also moved to the downside on the day. While the German DAX Index slumped by 2.1 percent, the French CAC 40 Index and the U.K.’s FTSE 100 Index plummeted by 3.3 percent and 3.8 percent, respectively.

In the bond market, treasuries moved sharply higher following the news of the Fed’s unlimited bonds purchases. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 17.4 basis points to 0.764 percent.

Looking Ahead

Trading on Tuesday may be impacted by reaction to the latest developments in Washington, as lawmakers continue to try to negotiate an agreement on a fiscal stimulus bill.

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Sensex snaps 3-day rally, ends 131 points lower on recession fears

NSE Nifty closed 18.80 points higher.

Equity benchmark index Sensex erased early sharp gains to close lower by 131 points on Friday, snapping its three-day rising streak as concerns over an impending recession heightened after the RBI said the projected annual growth was at risk due to the COVID-19 outbreak.

In a bid to support the economy during the pandemic, RBI Governor Shaktikanta Das unveiled a slew of measures, including its steepest interest rate cuts in more than 11 years. The repo has been cut by 75 basis points to 4.4% – the lowest in at least 15 years.

Further, the Reserve Bank reduced the cash reserve ratio (CRR) for all banks by 100 basis points to 3% to release Rs 1.37 lakh crore across the banking system. It also allowed banks to put on hold monthly instalment payments on all term loans for three months.

After opening significantly higher, the 30-share BSE barometer gave up all the gains to end 131.18 points or 0.44% lower at 29,815.59. It hit a high of 31,126.03 and a low of 29,346.99 in day trade.

On the other hand, the broad-based NSE Nifty closed 18.80 points, or 0.22%, higher at 8,660.25.

Bajaj Finance was the biggest loser in the Sensex pack, tanking up to 8%, followed by Hero MotoCorp, IndusInd Bank, Maruti and HCL Tech.

Axis Bank, ITC, NTPC and M&M were among the top gainers.

Despite massive rate cuts, domestic market turned negative on concerns over the annual economic growth amid rising uncertainty over the COVID-19 pandemic, traders said.

Announcing the decisions of the Monetary Policy Committee (MPC), RBI Governor Das said that no projection for growth and inflation was being given in view of the uncertainty created by outbreak of the deadly virus.

He further said that the growth projection of 4.7% for the fourth quarter of 2019-20 and 5% for the whole fiscal was at risk.

Jimeet Modi, Founder and CEO, Samco Securities said, In such uncertain times, instead of fresh funds entities want to save their skin, RBI’s relaxation of only 3 months instead of 6 months for moratorium on interest on loans and working capital has disappointed many.

He added that there is no doubt that the RBI is playing every card in its pocket to prevent a crisis-like situation by giving banks the ability to lend more, but as such no direct helping hand has been given to ailing industries as of now.

Meanwhile globally, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended higher, while benchmarks in Europe were trading in the red.

International oil benchmark Brent crude fell 2.20% to USD 25.76 per barrel in futures trade.

On the currency front, the rupee depreciated marginally to 75.20 against the US dollar in intra-day trade.

The death toll due to COVID-19 rose to 17 in the country on Friday and the number of coronavirus cases climbed to 724, according to the Health Ministry.

The number of deaths around the world linked to the new coronavirus has crossed over 24,000.

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Stocks surge has Dow flirting with bear-market exit

US unemployment claims soar as coronavirus slams economy

Last week’s jobless claims hit a record-breaking 3.28 million. FOX Business’ Lauren Simonetti with more.

U.S. equity markets clambered higher Thursday as investors digested record jobless claims and waited for the House to vote on a $2 trillion relief package.

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First-time unemployment filings surged to a record 3.28 million last week, according to the Labor Department, as the COVID-19 pandemic caused businesses to temporarily close their doors and lay off employees. The previous record was 695,000, set in 1982.

The all-time high in claims came hours after the Senate voted 96-0, passing the $2 trillion relief package that would extend aid to individuals, small businesses and corporations hit hardest by the pandemic. The House of Representatives is scheduled to debate the bill on Friday.

The Dow Jones Industrial Average gained as many as 1,022 points, or 4.8 percent, while the S&P 500 and Nasdaq Composite climbed as much as 4.4 percent and 3.9 percent, respectively. A gain of 1,109.77 points or more would lift the Dow out of bear-market territory.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 22190.06 +989.51 +4.67%
SP500 S&P 500 2568.08 +92.52 +3.74%
I:COMP NASDAQ COMPOSITE INDEX 7615.449408 +231.15 +3.13%

Looking at stocks, hard-hit travel-related names are seeking direction as the status of the $2 trillion relief package remains in limbo.

Boeing shares continued to gain, adding to the 67 percent gain they’ve seen this week.

Ticker Security Last Change Change %
BA BOEING COMPANY 182.35 +23.62 +14.88%

Oil majors Exxon Mobil and Chevron were weaker as West Texas Intermediate crude oil plunged 3 percent to $23.76 a barrel. U.S. shale names Continental Resources and Pioneer Natural Resources also fell.

Ticker Security Last Change Change %
XOM EXXON MOBIL CORPORATION 38.66 +1.37 +3.67%
CVX CHEVRON CORP. 72.97 +3.70 +5.34%
CLR CONTINENTAL RESOURCES 10.43 +0.20 +1.96%

Banks gained even as buying across the Treasury complex flattened the yield curve. The yield on the 10-year note was down 5.8 basis points at 0.798 percent while the yield on the 3-month bill, which fell below zero on Wednesday, was little changed at -0.048 percent.

Ticker Security Last Change Change %
JPM JP MORGAN CHASE & CO. 96.48 +4.75 +5.18%
BAC BANK OF AMERICA CORP. 22.25 +1.15 +5.43%
C CITIGROUP INC. 45.17 +3.31 +7.92%
WFC WELLS FARGO & COMPANY 30.01 +1.04 +3.59%

Ford said it’s aiming to restart production at some North American plants as early as April 6. The company’s credit rating was cut to junk at S&P.

On the earnings front, Micron Technology’s results exceeded expectations and gave a stronger-than-anticipated forecast as the company said it would receive a boost as more people worked from home.

Signet Jewelers reported better-than-expected quarterly results, but suspended its dividend and did not provide financial guidance due to uncertainty caused by the coronavirus.

Ticker Security Last Change Change %
F FORD MOTOR COMPANY 5.44 +0.05 +0.84%
MU MICRON TECHNOLOGY INC. 43.98 +1.48 +3.48%
SIG SIGNET JEWELERS LTD 10.30 +2.97 +40.54%

In Europe, Germany’s DAX paced the decline, down 1 percent, while France’s CAC and Britain’s FTSE were off 0.6 percent and 0.3 percent, respectively.

Asian markets were lower across the board with Japan’s Nikkei falling 4.5 percent, Hong Kong’s Hang Seng sliding 0.7 percent and China’s Shanghai Composite down 0.6 percent.

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This Time May Be Different as U.S. Stocks Eye Back-to-Back Gains

The best day for at least one U.S. stock gauge since the Great Depression has strategists mulling the chance of further gains.

American shares haven’t enjoyed a two-day rally since Feb. 12, and the last three surges of more than 5% in the S&P 500 Index were immediately followed by equivalent losses. But with a record surge of stocks trading on an uptick at Tuesday’s open and activity heavily skewed toward winners, Sundial Capital Research Inc. is hopeful this time could be different.

“The buying interest and close at the highs on Tuesday could be enough to finally change sentiment enough to string together some up days,” said founder Jason Goepfert in a note Tuesday. “And if buyers can do that, historical precedents argue strongly that the worst of the selling is behind us, at least for a couple of months.”

The S&P 500 jumped 9.4% on Tuesday, the most since October 2008, as Congress closed in on an unprecedented spending bill to prop up the virus-stricken U.S. economy. The Dow Jones Industrial Average surged 11.4% — its best gain since March 1933.

In and of itself, just two days of back-to-back gains would be a “great signal” for stocks, said Mischler Financial’s Director of International Trading, Larry Peruzzi, in recent emailed comments.

Still, there were signs investor caution remained high. While April futures on the Cboe Volatility Index fell Tuesday, a gauge of volatility on the VIX pushed higher, and investors were busy buying exposure to further price swings in index and exchange-traded-fund products, noted Susquehanna International Group LLP strategist Chris Murphy.

Meanwhile, futures on the S&P 500 edged lower in early Asia trading Wednesday.

“It is important to remember that some of the largest one-day rallies in SPX’s history took place during bear markets,” Murphy said. “One-day pops are not uncommon in a down market.”

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Stock Rebound Heads to Asia After Wall St. Surge: Markets Wrap

Stocks in Asia looked set to extend a global rally after the best session for U.S. stocks in almost a dozen years, with investors rediscovering some appetite for risk as Congress negotiates an emergency-spending bill.

Futures surged in Hong Kong and Japan, indicating gains could extend to a second day for Asia-Pacific shares. Australian shares opened higher. S&P 500 futures gained after the index soared more than 9% — the biggest one-day gain since October 2008 — following a rout at the start of the week. The dollar added to declines against developed and emerging currencies alike, in a tentative sign of reduced stress after the greenback’s recent surge. Treasuries sank.

“Sentiment has improved, but to call it a turning point is too strong a word for now,” said James McCormick, global head of desk strategy at NatWest Markets. “It is more of a tug-of-war. Policy bazooka is in place, but will be fighting against very weak data and still worrying trends on Covid-19 data. We are more neutral on risk assets now.”

About $26 trillion has evaporated from equity markets since mid-February, and investors have been left sifting the wreckage and weighing the chances of a lasting rebound. On the one hand, Wall Street has begun to argue that liquidations are nearing an end with real-money investors like pension funds ready to step in, and there are signs of improvement in some of world’s regions that were hardest-hit by the virus. But the number of infections globally continues to accelerate and many of the largest economies are grinding to a halt.

Tuesday’s gain in risk assets follows an unprecedented move by the Federal Reserve to backstop large swaths of the financial system. The Dow Jones Industrial Average rose more than 11% to clock its biggest advance since 1933. Still, key gauges of U.S. manufacturing and services in March fell the most on record, showing the deep toll the pandemic has already taken.

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Elsewhere, gold was steady after a recent surge. Oil added to gains.

These are the main moves in markets:

Stocks

  • S&P 500 futures rose 0.6% as of 8:02 a.m. in Tokyo. The S&P 500 advanced 9.4% on Tuesday.
  • Futures on Japan’s Nikkei 225 added 2.8%.
  • Hang Seng Index futures rose 1.6%.
  • Australia’s S&P/ASX 200 Index advanced 1.9%.

Currencies

  • The yen traded at 111.27 per dollar.
  • The offshore yuan held at 7.0810 per dollar.
  • The euro rose 0.2% to $1.0811.
  • The Australian dollar rose 0.4% to 59.79 U.S. cents.

Bonds

  • The yield on 10-year Treasuries rose six basis points to 0.85% on Tuesday.
  • Australia’s 10-year bond yield rose seven basis points to 0.96%.

Commodities

  • West Texas Intermediate crude rose 3.5% to $24.86 a barrel.
  • Gold was up 0.3% to $1,637.63 an ounce.

— With assistance by Sophie Caronello, and Vildana Hajric

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Fed Slashing Rates Fails To Prevent Another Sell-Off On Wall Street

Stocks moved sharply lower during trading on Monday, more than offsetting the strong gains posted last Friday in the worst day for the markets in over thirty years.

With the sell-off on the day, the Dow fell to a new three-year closing low and the Nasdaq and the S&P 500 ended the day at their worst closing levels in over a year.

The major averages saw further downside going into the close, finishing the session just off their worst levels of the day. The Dow plunged 2,997.10 points or 12.9 percent to 20,188.52, the Nasdaq plummeted 970.28 points or 12.3 percent to 6,904.59 and the S&P 500 tumbled 324.89 points or 11.9 percent to 2,386.13.

Stocks initially came under pressure as traders cashed in on last Friday’s strong gains amid escalating concerns about the economic impact of the coronavirus pandemic.

Central banks around the world, including the Federal Reserve, are taking steps to provide economic stimulus to combat the effects of the virus, but the moves only seem to be exacerbating concerns about the impact of the outbreak.

On Sunday, the Fed took the unusual step of slashing interest rates by 100 basis points just days ahead of its scheduled monetary policy meeting this week.

The Fed lowered the target range for the federal funds rate to zero to 0.25 percent from 1 to 1.25 percent, noting the coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the U.S.

The central bank said it expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.

In addition to cutting rates, the Fed also announced a new quantitative easing program, revealing plans to increase its holdings of Treasury and mortgage-backed securities by at least $700 billion.

“The Fed’s decision to slash interest rates to near-zero won’t stop the economy falling into a recession, but the package of liquidity-boosting measures will help prevent credit markets seizing up, reducing the risks a deeper downturn,” said Michael Pearce, Senior U.S. Economist at Capital Economics.

He added, “We expect the Fed to do whatever it takes to keep markets functioning smoothly, and to announce further QE & forward guidance to support demand should the crisis worsen significantly.”

The drastic moves by the Fed have raised some concerns that central banks around the world will run out of ammunition to deal with a deepening crisis.

Stocks saw further downside in late-day trading after President Donald Trump suggested the coronavirus pandemic would not be under control until July or August.

In a sign of the economic impact of the outbreak, the New York Fed released a report this morning showing New York manufacturing activity unexpectedly contracted in the month of March.

The New York Fed said its general business conditions index plunged to a negative 21.5 in March from a positive 12.9 in February, with a negative reading indicating a contraction in regional manufacturing activity.

Economists had expected the general business conditions index to show a much more modest decrease and remain positive at 4.0.

The steeper than expected represented the largest point decrease on record and dragged the index down to its lowest level since 2009.

Sector News

Despite the Fed slashing interest rates, rate-sensitive commercial real estate and housing stocks showed substantial moves to the downside on the day.

Reflecting the weakness in the sectors, the Dow Jones U.S. Real Estate Index and the Philadelphia Housing Sector Index plunged by 17.4 percent and 17.8 percent, respectively.

Banking stocks also moved sharply lower on the day, dragging the KBW Bank Index down by 16.2 percent to its lowest closing level in well over three years.

Software, energy, chemical, and steel stocks also saw considerable weakness, reflecting another broad based sell-off on Wall Street.

Gold stocks were among the few groups to buck the downtrend, with the NYSE Arca Gold Bugs Index spiking by 7.9 percent. The strength in the sector came despite a steep drop by the price of gold.

Other Markets

In overseas trading, stocks markets across the Asia-Pacific region moved sharply lower during trading on Monday. Japan’s Nikkei 225 Index tumbled by 2.5 percent, while China’s Shanghai Composite Index tanked by 3.4 percent.

The major European markets also saw substantial weakness but closed well off their worst levels of the day. While the French CAC 40 Index plummeted by 4 percent, the German DAX Index and the French CAC 40 Index plunged by 5.3 percent and 5.8 percent, respectively.

In the bond market, treasuries rebounded after pulling back sharply over the past several sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, tumbled by 22.3 basis points to 0.728 percent.

Looking Ahead

News on the coronavirus front is likely to remain in focus on Tuesday, potentially overshadowing reports on retail sales, industrial production and homebuilder confidence.

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Late S&P 500 Rout Sinks Stocks Below Christmas 2018 Support Line

The late-session plunge in U.S. stocks took out a line of defense that held up twice earlier this week.

The S&P 500 sank 4.3% Friday, plunging through the Christmas Eve 2018 level that halted sell-offs Wednesday and Thursday. With it gone and signs mounting that the effects from the coronavirus will lead to a recession, chart watchers are recalibrating where the current pain may halt.

“There’s a lot of fear and anxiety,” said Randy Frederick, a vice president of trading and derivatives at Charles Schwab. “December 2018 was a severe correction that almost threw us into a bear market. I don’t see a lot of support between that level and the election low in November 2016,” around 2,139. Such a drop can happen really fast, he said.

U.S. stock trading volumes surged to about 60% above the average as investors weighed a quicker pace of coronavirus infections against flickers of optimism that have followed extraordinary monetary and fiscal actions meant to protect the global economy. The S&P 500 fell 15% this week in the biggest loss since 2008.

The past few weeks have seen the S&P break through key support levels, including a drop below a trend line that traced from the day the bull run began 11 years ago.

The next bulwark is 2,100, according to Evercore ISI’s Rich Ross, which marks a 50% retracement of the entire bull market. After that comes 1,800, which would imply a more than 20% decline from Friday’s close.

“Momentum is strong to the downside,” said Ross. “There is no playbook for a pandemic and most major markets remain structurally broken and in bear markets.”

Fear is creeping in that the virus-induced slowdown will be deeper and more painful than many previously projected. It took three months for the first 100,000 coronavirus cases but only 12 days for the next 100,000. The pathogen has now killed more than 10,000 people around the world.

Restrictions on business activities and public assembly have already begun to affect several states’ revenue and costs. New York State ordered all non-essential workers to stay at home.

Economists at Goldman Sachs are warning the U.S. economy may shrink 24% on an annualized basis in the second quarter. Full-year GDP growth could contract 3.8% on an annual average basis, they said.

“Stock market investors who still have money in the market are shutting down, selling it all, and taking their money out at the end of an incredible week that defies description,” said Chris Rupkey, chief financial economist for MUFG Union Bank. “And we were there when Lehman failed.”

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Stocks slide after Cuomo orders statewide lockdown

US stocks slid Friday afternoon as Wall Street got spooked by fresh moves to contain the coronavirus, including a statewide lockdown by New York Gov. Andrew Cuomo.

The Dow Jones industrial average tumbled as much as 355.17, or 1.7 percent, after rising roughly the same amount in early trading, as Gov. Cuomo ordered all non-essential businesses to close and residents to stay home beginning Sunday evening.

The S&P 500 and the Nasdaq — which, like the Dow, had rallied in the morning on aggressive moves by central banks to contain the coronavirus crisis — also wiped out their opening gains to trade as much as 2.3 and 1 percent lower, respectively.

In addition to Cuomo’s clampdown, President Trump on Friday banned all non-essential travel between the US and Mexico after enacting a similar ban across the Canadian border earlier this week.

Escalating fears about the coronavirus pandemic plunging the world into a recession have put Wall Street on track to close the week deep in the red despite a small rebound on Thursday.

The Dow shed 3,098.43 points, or 13.3 percent, this week through Thursday as it posted a record point loss and closed below 20,000 for the first time in three years. The S&P was off 11.1 percent for the week while the Nasdaq was down about 9.2 percent.

Investors aren’t likely to feel all that calm until there’s a treatment for the virus that can be widely distributed around the world, according to Jason Ader, CEO of SpringOwl Asset Management.

“I think the volatility’s here to stay until that moment where the average person in the street feels, ‘If I get it, at least it’s like a cold and a flu and I’ll be OK,’” Ader said.

Friday’s selling came followed the Thursday bounce that came as a barrage of central bank actions aimed at shoring up the economy appeared to finally encourage investors.

The Bank of England slashed its benchmark interest rate to near zero on Thursday, following similarly aggressive monetary policy moves from the Federal Reserve and the European Central Bank.

“The shoulder-launched artillery barrage from the worlds’ central banks and government treasuries seems to have stopped the rot sweeping the global economy for now,” Jeffrey Halley, senior currency analyst at OANDA, wrote in a commentary.

But markets will likely remain volatile as the coronavirus continues to spread across the US and Europe while Congress crafts a $1 trillion fiscal stimulus package to help stanch the economic bleeding.

The number of Americans applying for unemployment claims is expected to skyrocket as the pandemic forces businesses to lay off workers, with Goldman Sachs predicting 2.25 million.

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