Benchmarks ended in the negative territory on Friday as a steep rise in coronavirus cases in the United States weighed on investors’’ sentiments.
The Dow Jones Industrial Average (DJI) dropped 915.39 points, or 4.1%, to close at 21,636.78 and the S&P 500 slid 88.60 points or 3.4% to close at of 2,541.47. While, the Nasdaq Composite Index closed at 7,502.38, losing 295.16 points or 3.8%. The fear-gauge CBOE Volatility Index (VIX) increased 0.9%, to close at 65.54. Declining issues outnumbered advancing ones for a 3.17-to-1 ratio on the NYSE and a 2.98-to-1 ratio on the Nasdaq favored decliners.
How Did the Benchmarks Perform?
As coronavirus panic drove investors to purchase safe-haven assets like the U.S. Treasury yields, banking index fell 4.6% following the decline of the treasury yield. Out of the 11 major sectors of the S&P 500, energy sector was the biggest percentage loser, declining 6.9%, with the drop in oil price.
Additionally, shares of airlines dropped after U.S. Treasury Secretary Steve Mnuchin said that the help designated for airlines in the aid package. Airlines would need to compensate the money to the taxpayers.
Shares of Delta Air Lines, Inc. DAL, American Airlines Group Inc. AAL and United Airlines Holdings, Inc. UAL fell 6.8%, 10.3% and 7.6%, respectively. American Airlines Group a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Overall, the S&P index recorded one new 52-week high and one new low. Meanwhile, Nasdaq recorded nine new highs and 39 new lows.
Coronavirus Cases Spikes
On Friday stocks ended the three-day surge after investors doubted about economic impact of the rise in coronavirus cases in the United States. In fact, stocks tumbled even after the House of Representatives approved a $2.2 trillion aid package to help people and companies subsist the economic downturn caused by COVID-19 and also provide hospitals with urgently needed medical supplies like ventilators and personal protective equipment.
So far the United States has not only surpassed China and Italy as the country with the most coronavirus cases, passing over 85,000, while fatalities increased to 1,200. Global cases of the coronavirus have surged to more than 542,700 till Friday.
Benchmarks went through a rollercoaster ride last week, the DOW posted its biggest weekly gain since 1938, surging more than 12%. While the S&P 500 and Nasdaq rose 10.3% and 9.1%, respectively, coming off their best week since 2009.
Sharp gains in the last week came from prospect of massive fiscal and monetary stimulus. Along with that President Trump signing a $2 trillion stimulus package into law to curb the economic blow from the coronavirus outbreak, helped markets gain traction. The Federal Reserve’s open-ended asset-purchase program also boosted the stocks.
Stocks that Made Headline
Alphabet's Google to Donate $800M to Combat Coronavirus
Alphabet Inc.'s GOOGL Google is leaving no stone unturned to help the society in fighting the coronavirus pandemic. As the coronavirus pandemic continues to spread, the rising number of infected patients calls for better infrastructure and safety for the comparatively lesser number of healthcare workers. (Read More)
Analog Devices Withdraws Guidance Amid Coronavirus Crisis
Analog Devices Inc. ADI has withdrawn its earlier announced guidance for fiscal second-quarter 2020 on account of the coronavirus outbreak. The company also announced that the supply chain has been disrupted owing to coronavirus crisis. (Read More)
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Click to get this free report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report American Airlines Group Inc. (AAL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research