Stock Market Update Thursday, March 12th, 2020
Today will go down in history.
The DOW lost 20% in the 1987 stock market crash 32 and half years ago. But today’s 10.0% drop was the WORST drop since 1987 and the biggest point loss of all-time with a 2,353 point loss.
It was an ugly day from the start.
In overnight trading, futures were halted after hitting circuit breaker levels with a 5.0% loss.
The drop came after President Trump announced that flights from Europe will be banned in an effort to stop the spread of COVID-19. And the NBA announced that they are suspending the season.
Today almost immediately after the open, the 7% loss circuit breaker was hit and trading was halted again for 15 minutes.
Today’s drop came in spite of the Fed and the European Central Bank (ECB) announcing stimulus measures.
Here’s where the major indices ended the day:
- The S&P finished with a 9.5% loss. Down 261 points, the S&P ended at 2,481.
- The DOW ended lower by 10.0%. Dropping 2,353 points the DOW closed at 21,201.
- The NASDAQ was down 9.5%. With a 755 point loss, the NASDAQ finished at 7,196.
Crude Oil (CL) spent the day in negative territory and ended with a loss. Down 4.4%, Crude Oil finished the day at $31.52 a barrel.
Not only was today’s slide HUGE, but losses were everywhere!
Stocks were hammered, Crude Oil dropped and even Gold (GC) wasn’t safe. With a 3.3% loss, Gold actually finished near 2-week lows!
The VIX (aka “Fear Index”) jumped 40% to 75.47 today, and is now trading at the highest level since the financial crisis.
Cruise lines continued to get slammed.
Royal Caribbean finished lower by 31.8%, Carnival (CCL) lost 15.0% and Norwegian Cruise Lines down 20.7%.
And the economic harm that COVID-19 is causing continues…today the NCAA canceled March Madness. And Disneyland announced that it will shut its doors.
During this market madness remember 2 things:
- The markets can stay irrational longer than you can remain solvent. So be picky and remember that being on the sidelines IS a position.
- Trade what you see, not what you think! Traders that bought “thinking” we made lows last week are getting crushed.
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.