Was this the craziest trading day…EVER?!?!? – DOW up 1,294 points

Share this article with friends!
  • 2
  •  
  •  
  •  

Stock Market Update Monday, March 2nd, 2020

Boeing Stock Analysis after the crashIt was a WILD trading day for sure.

But if you look at the overnight session, this could be one of the craziest trading days of all time!

Last night futures opened at 6pm ET. And the E-Mini Dow quickly dropped and was down 2.6%.

But in overnight trading futures markets rallied. And the E-Mini Dow was up 1.9%!!!

Then futures dropped again, and 2 1/2 hours before the U.S open the E-Mini Dow was down 3.8% from the overnight high.

And this was all before U.S. markets were open!!!

The major indices were higher at the open, then pulled back during the first 40 minutes of trading. 

But after the pullback stocks rallied into lunch.

The major indices were choppy heading into the afternoon. But a rally into the close left stocks at session highs…and up 5.1% the DOW experienced the biggest 1-day gain since 2009!

Here’s where the major indices ended the day:

  • The S&P finished with a 4.6% gain. Up 136 points, the S&P ended at 3,090.
  • The DOW ended higher by 5.1%. Adding 1294 points the DOW closed at 26,703.
  • The NASDAQ was up 4.5%. With a 387 point gain, the NASDAQ finished at 8,950.

Crude Oil (CL) snapped a 6-day losing streak. Up 4.5%, Crude Oil finished the day at $46.79 a barrel.

Today’s rally wasn’t really about the coronavirus. The virus is continuing to spread (we now have 6 deaths in the U.S.) and things are looking worse.

And in China, Manufacturing PMI for February came in at 35.7 a record low (readings below 50 show contraction).

So why did stocks rally?

It was more about how central banks will step into to help this global financial crisis.

Specifically, the rally came with traders betting that the Fed will step in and cut rates to help the coronavirus’ impact on the economy. Based on the CME FedWatch tool, traders believe there is a 100% probability the Fed will cut rates 50 basis points later this month.

Apple (AAPL) was up big today, up an impressive 9.3%.

Robinhood – helping the rich and hurting the poor?

We’ve shared our concerns about Robinhood during our live events. And today these concerns became a reality after the millennial favorite stock trading app experienced a system-wide outage.

So unfortunately, Robinhood traders missed one of the biggest 1-day gains in the history of the DOW today. But even worse…traders who took short positions last week couldn’t close trades going against them…OUCH!!!

Here is the economic calendar for the week:

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.


Share this article with friends!
  • 2
  •  
  •  
  •  

Leave a Reply 1 comment