March 16 – 20, 2020 Recap
Equities Skid as Viral Economic Fears Mount
U.S. equity markets skidded last week with the Dow Jones Industrial Average suffering its biggest weekly point-loss on record amid escalating concerns the COVID-19 pandemic will cause a global recession. The number of confirmed cases has more than doubled over the week, with New York now the hardest-hit state with nearly 21,000 infections of the 35,345 active cases for the nation. With global cases topping 350,000 in 167 nations, governments around the world are increasingly imposing mandatory restrictions to isolate residents. The good news is the Federal Reserve is virtually all-in with unlimited additional quantitative easing measures with daily purchases all this current week, while Congress is nearing an unprecedented nearly $2 trillion stimulus package. Also positive, the IRS extended the 2019 tax filing date to July 15.
For the week, the Dow Industrials plunged 17.30%, the S&P 500 lost 14.95%, and the tech-heavy Nasdaq Composite sank 12.62%. On Friday, the Dow ended below 20,000 for the first time in three years, down nearly 10,000 points since its mid-February all-time high.
The Weekly Recap is published by Cetera Investment Management LLC, an SEC registered adviser owned by Cetera Financial Group. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.
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