Market Watch: Wall Street Closes Its Worst Week Since 2008
Wall Street closed at a plunging rate this week as stocks attempt to rally on Friday, capping their worst week since 2008. In total, the Dow is down by over 24% this month, on pace to be the biggest month-long fall since 1931 during the Great Depression. Concluding the week, the country’s largest states, California and New York, mandated non-essential workers to stay home, which results in a more significant loss in jobs and increased investor uncertainty. New York remains the highest number of coronavirus cases in the country, creeping up to double digits as cases surged by 3,000 overnight.
“This is a crisis; corporations are set to lose over $4 trillion. Job losses can quickly escalate into the millions as Americans are not spending, and small businesses are being forced to close their doors.”
On Friday, The Dow Jones Industrial Average and S&P dropped by over 3% just moments after the World Health Organization released a statement that healthcare systems are “collapsing” due to the pandemic. The Dow slid by 17% this week, closing at 19,173.98, which is the first time the Dow has hit below 20,000 since February 2017. S&P dropped by nearly 15% and Nasdaq slid by 12%, which peels back all of the gains from Trump’s presidency.
The floor of the New York Stock exchange is set to be solely online trading as of March 23. Traders finished off their last day on the floor with chaos as oil prices dropped below $20 per barrel, which is the lowest price traders have seen in years. Oil prices below $50 per barrel leaves producers with almost no profit. The gas and oil industry’s dramatic drop in demand is due to the travel bans, working from home government mandates, and more coronavirus implications.
Large corporations are falling at the feet of the Trump administration to provide aid for over $1 trillion in bailouts due to the virus. On Thursday Senate Majority Leader, Mitch McConnell released a massive economic stimulus bill that has caused controversy amongst political leaders, claiming that it neglects lower-income families that have suffered from the repercussions of the virus. Senator Lindsey Graham argued after the press conference on Thursday that Americans need income, not just one check.
The United States Central Bank announced Friday that they would include municipal bonds in their asset purchase program. The Federal Reserve announced that they would add stimulus packages in addition to Congress’ plans. With all of the persisting efforts to restore the economy, many key players are urging the government to help small businesses along with the corporations to ensure that the economic loss will not persist.
The only winners in March thus far have been healthcare providers, supermarket chains, and online retail. Technology companies such as zoom and pharmaceutical companies working towards cures and vaccinations are some of the only safe players in the coronavirus economy.
This is a crisis; corporations are set to lose over $4 trillion. Job losses can quickly escalate into the millions as Americans are not spending, and small businesses are being forced to close their doors.