Stock Market Update Thursday, June 11th, 2020
Stocks were HAMMERED today.
The sell off began overnight. And at the open things looked UGLY with the S&P already down more than 2.0%!
But it only got worse.
The major indices were in a virtual free fall from late morning until the close. And with losses of 5-7%, the major indices finished with their worst day since March.
Why the drop?
Fed Chair Jerome Powell didn’t help matters, after he said that the recovery was going to “take some time.”
But now there’s renewed coronavirus concerns after cases jump on the reopening of the economy.
In Houston, Harris County Judge Lina Hidalgo and Houston Mayor Sylvester Turner released a statement saying they’re close to reimposing a “stay at home” order. The statement came a day after Texas recorded the most new cases in a single day since the being of the pandemic. Hildago said they are “approaching the precipice of a disaster” with new coronavirus cases “out of hand right now.”
Here’s where the major markets ended the day:
|*As of market close|
While stocks were getting crushed the VIX (aka “Fear Index”) skyrocketed 48% to 40.79. It was the highest close for the VIX since April 23rd.
Remember those stocks rallying on optimism over the reopening of the economy? Today they were beaten up…bad.
American Airlines (AAL) lost 15.5%, United (UAL) dropped 16.1%, MGM (MGM) suffered a 13.0% loss and Norwegian Cruse Lines (NCLH) was hit with a 16.5% loss…and this is just a handful of today’s losers.
But on a positive note, Kroger (KR) was able to squeeze a profit out of today’s session, moving higher by +1.4%.
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.