Stocks Enter Correction
Fears over the impact from the fast-spreading COVID-19 virus sent global markets reeling last week, with U.S. stocks registering their worst weekly performance since the 2008 financial crisis. U.S. equity markets were shaken after the World Health Organization raised its global virus risk level and more major companies warned that supply-chain disruptions could weaken sales and profit forecasts. Markets pared their weekly losses Friday after Fed Chairman Powell said that while the fundamentals of the economy remain strong, the central bank is closely monitoring the virus and is ready to act as warranted. Fed policymakers next meet on March 17-18 and an interest rate cut is widely forecast.
For the week, all three major U.S. indices skidded more than 10%, officially meeting the designation of a market correction. The Dow Industrials plunged 12.36%, losing over 3,580 points, the S&P 500 lost 11.44%, and the tech-heavy Nasdaq Composite sank 10.52%. The benchmark S&P 500 fell for a seventh-straight day on Friday, its longest slide since 2016.
The Weekly 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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