The Wuhan coronavirus strikes again in the middle of the trading week as the U.S. stock market is witnessing an ocean of red ink.
To stop the spread of Covid-19, the U.S. and Canada announced that they are temporarily shutting down the border. Trade will not be affected, but it is a huge development in the global economy.
This comes one day after both governments announced huge stimulus packages and extended the tax deadline to help out their respective economies.
In any other time, you would think a $1 trillion stimulus package and giving consumers money, plus all the central banks’ actions, would juice the market. Not this one.
Here is what the market looks like at the time of this writing:
– Dow Jones: -1,007.99, or -4.75 percent, to 20,229.39.
– S&P 500: -3.98 percent to 2,428.46.
– Nasdaq: -3.17 percent to 7,102.49.
– Oil: -10.02 percent to $24.25.
– 10-year Treasury note: 1.002 percent.
– Gold -$17.20 to $1,508.60.
Although the major shorting exchange-traded funds and notes (VXX, SQQQ, and TVIX) are climbing from yesterday’s close, they are off from their opening prices.
Until a vaccine is developed or the number of cases fall, the volatility will persist.
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