Stock Market Update Wednesday, May 13th, 2020
After a back and forth overnight session, index futures were higher heading into the U.S. open.
But after Fed Chair Jerome Powell’s comments the major indices started to slide.
President Trump has been pushing for negative interest rates. But Fed Chair Powell made it clear that negative rates are “not something that we’re looking at,” saying “the evidence on the effectiveness of negative rates is very mixed.”
Even more importantly, Powell said that more needs to be done to support the economy and that “the recovery may take some time to gather momentum” with COVID-19’s impact on the economy unprecedented and “worse than any recession since World War II.“
There was a sharp drop in the first 5-10 minutes of trading, then a rally. But after making session highs a little more than an hour into trading, stocks tanked.
The slide erased early gains and sent the major indices lower by 2.0%+ before settling a little off of the day’s lows.
With today’s losses the DOW dropped for the 3rd day straight. And the NASDAQ turned negative for the year.
Here’s where the major indices ended the day:
- The S&P finished with a 1.8% loss. Down 50 points, the S&P ended at 2,820.
- The DOW ended 2.2% lower. Dropping 517 points the DOW closed at 23,248.
- The NASDAQ was down 1.6%. With a 139 point loss the NASDAQ finished at 8,863.
Crude Oil (CL) dropped today. Down 2.7%, Crude Oil ended at $25.62 a barrel.
Once again bank stocks struggled again today.
Bank of America (BAC) lost 4.6%, Citigroup (C) dropped 4.1%, and JP Morgan Chase (JPM) slide 3.6%.
Cisco (CSCO) finished lower by 2.9% today. But the stock is up almost 2.0% after hours, after beating adjusted earnings and revenue estimates
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.