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Breaking News Stocks fall into correction, head for worst week since financial crisis

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Stocks fall into correction, head for worst week since financial crisis
By Anneken Tappe, CNN Business

www.cnn.com

Dow falls 1,191 points -- the most in history

US stocks again sold off sharply on Thursday as worries about coronavirus mounted. The S&P 500 posted its worst day since August 18, 2011, and the three main indexes fell into correction territory. Stocks are on track for their worst week since the financial crisis.
www.cnn.com www.cnn.com

Updated 11:29 AM ET, Thu February 27, 2020

Watch the Dow live


New York (CNN Business)US stocks fell into correction territory on Thursday as a weeklong selloff continued because of the coronavirus outbreak. All three major US indexes are now on track for their worst week since the financial crisis.



The Dow fell as many as 960 points Thursday before coming back a bit. The index was down 530 points, or 2% lower, by late morning. The S&P 500 also dropped 1.9%. The Nasdaq, which was the only major stock index to end Wednesday in the green, fell 2.1%.
Stocks have been selling off around the world all week as investors fret about the spread of the virus.
The Dow (INDU), Nasdaq Composite (COMP)and S&P 500 (SPX) all fell more than 10% below their most-recent peak, putting them in correction. In the United Kingdom, the FTSE 100(UKX) also fell into correction territory Thursday. This is the market's first correction since December 2018.
Stocks are still some ways away from a bear market, which is defined as 20% or more below the most recent peak.
All three indexes are on track for their worst weekly percentage drop since the 2007-2009 financial crisis. For the Dow and the S&P 500, this week is pacing to be the worst performance since October 2008. The Nasdaq hasn't dropped this much in a week since November 2008.
Worries about the coronavirus outbreak mounted this week, with the US Centers for Disease Control and Prevention saying it expects cases in the United States to rise. The virus has now infected more than 82,000 people worldwide, with the vast majority of cases in China.
Corporations continue to warn that they won't meet their first quarter earnings targets. Microsoft (MSFT) announced that late Wednesday. Goldman Sachs (GS) said in a report Thursday that it now thinks US companies will generate zero earnings in 2020.
"What's even more disconcerting is that the news headlines haven't been all that bad yet," said Paul Hickey of Bespoke Investment Group. "Right now, it's the fear of what could happen that's driving the markets rather than what is actually happening."
Indeed, the US economy is thought to be relatively more resilient against the effects of the virus as it is not as reliant on trade as its peers. The second reading of fourth quarter GDP left growth unchanged at 2.1%.
 
Dow falls another 1,000 points
By Anneken Tappe, CNN Business

www.cnn.com

Stocks post worst week since the financial crisis

It was a terrible week for the US stock market. The three major stock indexes posted their worst weekly percentage drops since the financial crisis, as coronavirus fears mount.
www.cnn.com www.cnn.com

Updated 10:18 AM ET, Fri February 28, 2020

New York (CNN Business)US stocks tumbled once again on Friday, as coronavirus fears continue to mount. Equities are on track for their worst week since the financial crisis.
Stocks opened sharply lower and extended their losses in the first hour of trading.
The Dow (INDU) fell nearly 1,086 points at its low-point. It was most recently down 980 points, or 3.8% -- its seventh-straight day in the red. The index dropped 3,226 points in the first four days of the week, including its worst one-day point drop in history on Thursday. On a percentage basis, Thursday's 4.4% slump was the worst performance since February 2018.
The S&P 500 (SPX), the broadest measure of the stock market, was down 3.8%, while the Nasdaq Composite (COMP) fell 3.2%.


Market participants are watching closely whether stocks will again end the day sharply lower. If investors are willing to hold their positions over the weekend, it could imply more fear and further selloffs next week.
All three stock benchmarks are on track for their worst week since October 2008.
The Federal Reserve is in focus on Friday, after expectations for an interest rate cut at the March 18 meeting spiked to 100%, according to the CME FedWatch Tool. Some market participants -- 34% -- even expect a half percentage point cut.
That said, various Fed officials have so far said rate cuts are not yet necessary.


"Further policy rate cuts are a possibility if a global pandemic actually develops with health effects approaching the scale of ordinary influenza, but this is not the baseline case at this time," said St. Louis Fed President James Bullard in a speech Friday.
As the novel coronavirus continues to spread around the world, countries are scrambling to respond. Economists and investors are concerned about the outbreak's impact on economic growth and corporate earnings. Various American multinational companies, including Apple (AAPL) and Microsoft (MSFT), have warned that they won't meet their earnings guidance because of disruptions from the virus.
 
deadeye said:
Eventually.


Thing is, ..........there's no way to know how far it's gonna fall before it bounces back..


Also, some might say that the market is........"correcting itself"........right now.
Click to expand...
They saying another 3months max.
And 40%
 
www.dailymail.co.uk

Dow plunges another 700 points as markets sound recession alarm bells

Investors are reeling after virus fears wiped nearly $3 trillion off the combined market value of S&P 500 companies this week, with the index confirming its fastest correction in history.
www.dailymail.co.uk www.dailymail.co.uk

U.S. stock indexes fell sharply again on Friday as the rapidly spreading coronavirus outbreak raised the alarm for a possible global recession.


The Dow Jones Industrial average was down 357 points at the closing bell, or 1.4 percent, marking seven straight days of losses and the biggest weekly drop since the 2008 global financial crisis.

Investors are reeling after virus fears wiped nearly $3 trillion off the combined market value of S&P 500 companies this week, with the index confirming its fastest correction in history in volatile trading on Thursday.

Globally, some $6 trillion, or about 10 percent, has been erased from stock values as markets in Asia and Europe plunged on fears that the outbreak will shrivel corporate profits there. At their heart, stock prices are determined by expectations of a company's future profits.
 
Until you learn how to read charts you won’t see much success trying to time the markets. Hope y’all not listening to niggas like Vlad.
 
DOS_patos said:
They saying another 3months max.
And 40%
Click to expand...


Kobe yikes clip.gif

I'm thinking it might be even longer than that.


Unless there's some good news about the virus..........like a vaccine or something............things aren't gonna get any better.


On top of that, it's not just about the virus now.


It's about the global supply chain being disrupted by the virus.


Potentially a global economic disaster.


There's already been about $6 trillion of wealth that's been lost in the past week or so.


Now, you can say it's just a paper loss for now until the market recovers............but, if some of these companies start going out of business and/or laying people off as a result:




I don't know man gif.gif
 
Sion said:
They said SARS would bankrupt nations and we're still here !! Im buying and I love it!!! I hope stock markets go to shit for as long as they can!!! Im not done buying yet LOLOLOLOLOL
Click to expand...


This feels different though.


Don't remember the markets reacting like this to SARS.


At least not for such a prolonged period of time.
 
Sion said:
Markets fell in Hong Kong when SARS hit. People thinking this is gonna wipe out mankind and are over reacting. Obviously it's no laughing matter if you know someone ill from the corona virus and they will eventually find a vaccine and it'll blow over. However, now is a great time to be investing.

How many of you were buying when the recession of 2008 occurred ?? All the money you left on the table. How often do opportunities like this come?

Not often.

So in the meantime I'd recommend you take advantage.
Click to expand...




Alonzo Mourning clip.gif
 
www.cnn.com

Dow drops nearly 800 points after the Fed's surprising news about the economy

Stocks went on a wild ride Tuesday after the Federal Reserve slashed interest rates by a half-point to help insulate the US economy from the global coronavirus outbreak.
www.cnn.com www.cnn.com


CNN
Dow drops nearly 800 points after the Fed’s surprising news about the economy
Anneken Tappe


Stocks went on a wild ride Tuesday after the Federal Reserve slashed interest rates by a half-point to help insulate the US economy from the global coronavirus outbreak.

Wild swings followed the unscheduled announcement until investors made up their minds around midday: The Fed's rate cut is bad news for the economy. Stocks dropped sharply in response.

The Dow (INDU) swung nearly 1,400 points from its low to its high point over the course of Tuesday. At one point, the index was down by 997 points. It finished down 786 points, or 2.9%, retracting Monday's buoyant rally, during which it recorded its best-point gain in history.
The broader S&P 500 (SPX) closed 2.8% lower, only a day after the index logged its best day in more than two years. The Nasdaq Composite (COMP) closed nearly 3% lower.

Stocks slipped as the 10-year US Treasury yield fell below 1% for the first time ever. The yield was back above 1% at the closing bell.
Bond yields are in part driven by future interest rate expectations, but yields has also come down as investors piled into safe-haven Treasuries. Bond yields and prices move opposite to each other.
Although lower interest rates are good for stocks, making borrowing cheaper, the emergency cut also was a signal that the US economy could be in serious trouble because of the virus outbreak.
Fed Chairman Jerome Powell stressed in a press conference Tuesday that the US economy remains strong but that the strain on industries like tourism and travel, as well as supply chains, was becoming apparent in sentiment surveys.
Stocks' pullback into negative territory showed just how aggressively the market had already priced in a rate cut, said Sebastien Galy, senior market strategist at Nordea.
The surprise move by the Fed followed a wild rally Monday in which the Dow recorded its highest point-gain in history. Stocks had soared because investors came to expect the Fed would cut rates.
Market expectations for an interest rate cut at the Fed's March 18 meeting had been at 100% at the market open Monday, even though Fed officials spoke out last week against cutting interest rates right away. The emergency rate cut was the first since the last financial crisis.
Finance officials from the world's seven largest advanced economies, known as the G7, failed to calm investors' nerves about the outbreak earlier Tuesday, as the group said it would not coordinate interest rate cuts and made no commitment to fiscal stimulus to stave off the economic fallout.
"The biggest thing that's being missed today is that the Fed has to cut to provide headroom for the global economy, particularly in places like Hong Kong where their exchange rates are pegged to the US dollar," said Jay Hatfield, portfolio manager at InfraCap, in emailed comments.
The dollar commonly falls when interest rates come down. This could ease global growth concerns, Hatfield said.
The ICE US Dollar Index was down 0.2% Tuesday afternoon.
 
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