Wall Street Suffers Worst Weekly Drop Since 2008 Financial Crisis
U.S. stock markets wrap up a brutal week with massive sell-offs driven by escalating coronavirus fears. Investors flee to bonds as the 10-year Treasury yield hits a historic low below 1.15%.
U.S. stock markets cap off a brutal week of trading with another massive sell-off as the Dow drops 357 points. Both the Dow and the S&P 500 post their biggest one-week declines since the 2008 financial crisis as coronavirus concerns push investors away from stocks. The S&P 500 slides 0.82%, while the Nasdaq Composite barely manages to close flat with a 0.01% gain.
Fear drives investors toward safer assets, causing the 10-year Treasury note yield to break below 1.15% for the first time in history. The rapid nature of this decline sparks speculation about potential monetary intervention from the Federal Reserve. Chairman Jerome Powell issues a statement promising the central bank will act appropriately to support the economy, though some investors doubt if lower interest rates will be enough to offset the economic impact of the outbreak.
Individual stocks experience extreme volatility amidst the broader market chaos. Apple shares swing wildly throughout the session before closing slightly lower, while JPMorgan Chase drops 4.33% to become one of the biggest Dow decliners. Market participants now look ahead to the weekend to monitor any new coronavirus developments and to see if central banks take immediate action to calm the turbulence.