Stock Market Update Thursday, March 5th, 2020
The enthusiasm from Super Tuesday is clearly over.
And traders are back to worrying about the coronavirus.
California declared a state of emergency after 53 confirmed cases and a death from the virus. There was also news that another cruise ship is quarantined, this time off of the California coast.
With fears of the coronavirus spreading, and specifically the economic impact it will have, stocks tanked.
Stocks opened lower and attempted a rally in the morning. But the major indices never made it back to positive territory and instead drifted lower in the afternoon.
And at the close, the major indices were looking at losses ranging from 2.9% to 3.6%…OUCH!!!
With today’s slide the S&P dropped back below its 200-day moving average.
Here’s where the major indices ended the day:
- The S&P finished with a 3.4% loss. Down 106 points, the S&P ended at 3,024.
- The DOW ended lower by 3.6%. Dropping 970 points the DOW closed at 26,121.
- The NASDAQ was down 2.9%. With a 262 point loss, the NASDAQ finished at 8,756.
Crude Oil (CL) finished lower for the 2nd day in a row. The loss came in spite of OPEC’s decision to cut output by 1.5 million barrels a day. Down 1.9%, Crude Oil finished the day at $45.90 a barrel.
Bank stocks were slammed today.
Bank of America (BAC) suffered a 5.7% loss and JP Morgan Chase (JPM) lost 4.9%!
But airlines were hit even harder.
American Airlines (AAL) dropped 13.4% and United Airlines (UAL) was down 13.3%.
In a flight to safety, Gold (GC) ended the day with a 1.8% gain at 1668.2 an ounce. It was the 2nd highest close for Gold since 2013.
And the $VIX (aka “fear index”) jumped 23.9% and closed at its highest level in 4 years!
It’s safe to say the coronavirus will remain in the spotlight tomorrow. But traders will also keep an eye on the February Jobs Report.
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.