New York Stock Exchange Closed Mixed On Coronavirus Concern

New York Stock Exchange Closed Mixed On Coronavirus Concern

The stock market recorded its worst weekly performance since the 2008 crisis, amid concerns over the coronavirus outbreak. The Dow Jones index lost 12.36 percent for the week, while the S&P 500 index lost 11.49 percent and the Nasdaq index lost 10.54 percent. The New York Stock Exchange suffered its biggest weekly loss since the 2008 crisis as it completed its last trading day of the week looking mixed amid concerns over the economic effects of the new type coronavirus (Covid-19) outbreak. At the close, the Dow Jones index lost 357.28 points, falling 1.39 percent to 25,409.36 points. The weekly loss for the index, which has been tracking downward for the week, was 12.36 percent. The S & P 500 index also fell 0.80 percent to 2,954.95 points at the close. The index closed this week with a loss of 11.49 percent. The Nasdaq index ended the day on a horizontal course, rising 0.01 percent to 8,567.37 points. The Nasdaq index recorded a weekly loss of 10.54 percent. As the rapid spread of the Covid-19 outbreak across the globe and growing concerns about its impact on the economy, indexes suffered a high depreciation throughout the week, with markets showing their worst weekly performance since the 2008 crisis. Bond yields fell to historic lows in the week as demand for American government bonds, seen as a "safe haven" by investors amid concerns about the outbreak, surged. Today, the 10-year government bond yield fell to 1.12 percent, while the 2-year state interest rate fell to 0.9 percent. US Central Bank (Fed) Chairman Jerome Powell said earlier in the day that the Kovid-19 outbreak posed a risk to economic activity. Stressing that the U.S. economy will continue to remain strong, Powell said: "the Fed is closely monitoring developments and their impact on the economic outlook. We will use our tools and act appropriately to support the economy." in his assessment. Although Fed Chairman Powell's announcement calmed investors, it was insufficient to ensure a recovery in markets. A client note shared by Goldman Sachs, one of the largest U.S. investment banks and financial services companies, said the Fed was expected to cut interest rates by 75 basis points in the first half of this year due to the Kovid-19 outbreak. On the other hand, Larry Kudlow, an economic adviser to US President Donald Trump, said the US economy would continue to be strong, underlining that investors and people should not panic.