3/26/20 Market Notes
Through mid-afternoon stocks rose sharply, lifting the Dow Jones Industrial Average by more than 1,000 points. Then, politics came back into play as Senator Sanders and four Republicans threatened to delay the bailout package over unemployment benefits, causing stocks to relinquish more than half of their gains. By the time the closing bell rang, the Dow gained 2.39% or 495 points, the S&P 500 gained about half as much, rising 1.15%, and the Nasdaq fell 0.45%. The U.S. dollar fell 1.3%, a sizeable move, gold also declined, while oil prices rose another 2%, above 2%. On a sector basis, Communication Services fell a.59%, while the Real Estate and Energy sectors both gained 4.49%.
Overnight European and Asian bourses are down more than 2% ahead of U.S. weekly jobless claims. The U.S. dollar, Treasury Yields, and gold prices are all lower in early trading as well.
This morning’s weekly unemployment claims, which reflect last week’s claims, came in at a stunning 3,283,000, economists and strategists polled by Bloomberg had expected about 1.5 million new jobless claims. For comparison purposes, weekly jobless claims have been averaging about 200,000. Premarket equity futures were down as much as 500 Dow points, but rebounded after the release and are now indicating a 300 point decline at the open. The Ten Year Treasury yield declined to 0.74% on the news.
As we previously stated, data reflecting the economic impact of the coronavirus is just now starting to be released, and could prove to be a shock to some investors, meaning that more volatility most likely lies ahead.
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.