USA stocks fall, snapping three-day winning streak

Marco Green
March 28, 2020

USA stock index futures fell on Friday, a day after the S&P 500 and Dow posted their best three-day run since the 1930s, as the United States faced the prospect of becoming the next global epicentre of the coronavirus pandemic.

The legislation is a welcome reprieve, but economists warn of a tough road ahead.

The United States surpassed China as the nation with the most number of COVID-19 cases, putting more pressure on lawmakers to flood the country with cash to support businesses and families.

"Currently, from a policymaker's perspective, it's a relative balance between managing the spread of the virus and opening the economy". It's expected to pass and be sent to President Donald Trump's desk to be signed into law.

S. stock market benchmark is still down about 25% from its February high.

The early Friday selloff came after the Dow soared nearly 4,000 points in the prior three trading days - its biggest three-day jump since 1931.

Many investors see a strong risk the market could fall deeply again as coronavirus infections increase and more people die, however.

"If there is a major acceleration over the weekend of coronavirus cases in NY and other states and the hospital system continues to get jammed up, then I think it will be a rough week for the market".

A record 3 million surge in USA weekly jobless claims offered the first glimpse of the extent of the economic hit from the outbreak.

Almost 3.3 million Americans applied for unemployment benefits last week, shattering the prior record set in 1982.

The Dow Jones Industrial Average sank 4.1 per cent, or 915 points, to 21,636.78.

The broad-based S&P 500 dropped 3.4 per cent to 2,541.45, while the tech-rich Nasdaq Composite Index tumbled 3.8 per cent to 7,502.38.

Volume on U.S. exchanges was 13.4 billion shares, its lowest since March 5, according to Refinitiv data.

Boeing shed 10% after gaining as much as 90% this week, as Mnuchin said the planemaker had no intention of participating in the package.

Major indexes jumped more than 6%, bringing the S&P 500 up 17% since Monday.

Declining issues outnumbered advancers for a 4.58-to-1 ratio on the NYSE and 3.63-to-1 ratio on the Nasdaq. The S&P 500 was down about 64 points and the Nasdaq was down about 212 points.

Other reports by Click Lancashire

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