The COVID-19 viral disease rattled worldwide markets in a big way in February, stirring profound fears from loss of life and the impact on global growth. COVID-19 was first detected late last year in Wuhan, China and has since infected nearly 90,000 people in 75 nations, killing more than 3,000. In the U.S., there are around 90 cases and at least two deaths. Equities turned decidedly lower after the World Health Organization raised its global virus risk level and many major companies warned that supply-chain disruptions could weaken quarterly sales and profit forecasts.
- U.S. stocks had their worst month-ending week since the 2008 financial crisis and posted its worst monthly performance since December 2018.
- Since setting an all-time high on February 19, the S&P 500 sank 12% in just six trading days, its fastest drop into correction status.
- The flight to safety has pushed 10-year Treasury yields to a record low of 1.15% from 1.92% at the start of the year. In contract, one-month T-bills ended February with a 1.45% yield.
The Monthly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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