Stock Market Update Tuesday, March 3rd, 2020
It was another roller-coaster ride in the markets today.
Stocks opened slightly higher then dropped.
But an emergency announcement by the Fed helped stocks rally to session highs.
The Fed announced an emergency rate cut by a half point to help with the impact of the coronavirus. The announcement came two weeks ahead of the Fed meeting scheduled later this month. The last time the Fed made an emergency rate cut of a half point was in the middle of the financial crisis.
The Fed’s decision was meant to calm traders and the markets. But based on today’s action, it made things worse.
There was a flight to safety after the news, and the 10-year yield pushed below 1.0% for the first time ever. There was also a move into precious metals, with Gold (GC) jumping 3.1%.
The S&P was up 1.5% reacting to the news but then tanked.
And after a 5% swing from highs to sessions, the S&P ended the day with a 2.8% loss.
Here’s where the major indices ended the day:
- The S&P finished with a 2.8% loss. Down 87 points, the S&P ended at 3,003.
- The DOW ended lower by 2.9%. Dropping 786 points the DOW closed at 25,917.
- The NASDAQ was up 3.0%. With a 268 point gain, the NASDAQ finished at 8,682.
Crude Oil (CL) finished higher for the 2nd day in a row. Up 1.0%, Crude Oil finished the day at $47.22 a barrel.
The drop in 10-year yield sent bank stocks lower. Bank of America (BAC) lost 5.5% and JP Morgan Chase (JPM) dropped 3.8%.
And airlines were some of the worst performers today. American Airlines (AAL) finished lower by 5.4%, and United Airlines (UAL) was down 4.9%.
The best stock in the S&P 500 today? Newmont Mining (NEM) rallied 6.2% helped out by the jump in Gold.
President Trump took aim at the Fed last night before today’s emergency rate cut. But wasn’t happy with the Fed after the cut as well.
The President tweeted, “The Federal Reserve is cutting but must further ease and, most importantly, come into line with other countries/competitors. We are not playing on a level field. Not fair to USA. It is finally time for the Federal Reserve to LEAD. More easing and cutting!”
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.