3/18/20 Market Notes
Stocks started on strong footing on Tuesday, as the Dow Jones Industrial Average climbed more than 1,000 points by late morning. By early afternoon much of the gains had been relinquished as investor nervousness persisted, but then rebounded sharply to close 1,048 points (5.19%) higher after the Treasury and Federal Reserve announced a proposed massive fiscal stimulus bill amounting to over a trillion dollars in aid. The S&P 500 ended 5.99% higher, while the NASDAQ closed 6.23% and the Russell 2000 rose 5.03%. On a sector basis, all eleven sectors of the S&P gained ground, although returns were uneven. To Wit: The Utilities sector rose a record 13.08%, while the Energy sector rose a tepid 0.7% as oil declined more than 6% to below $27 per barrel. Investors continue to reward higher quality companies with strong balance sheets, driving the Consumer Staples sector up 8.39%, compared to the Consumer Discretionary sector which ended 4.02% higher. The Ten Year Treasury Yield rebounded to above 1% on improved confidence that the Federal Government is prepared to take all available measures and actions to diminish the economic impact of the coronavirus. The U.S. dollar also rose.
Disclosures: This market commentary is written by the 1879 Advisors and represents the views of 1879 Advisors. This commentary is not investment advice and should not be used as a basis to make investment decisions. Please consult with your registered investment advisor before making any investment decisions.