Wall Street Close: Bruising losses in US stocks resulting in the worst start to a quarter on record
|- The Dow Jones Industrial Average ended around 974 points lower, down 4.4%, near 20,943.
- S&P 500 lost about 114 points, or 4.4%, closing near 2,471.
- The Nasdaq Composite closed near to 7,361, off around 340 points, or 4.4%.
It was not a good start for US benchmarks in the second quarter while investors stick to the sidelines in anticipation of grim headlines pertaining to the global economic crisis s and increasing number so COVID-19 cases and death tolls. Consequently, we witnessed some bruising losses in US stocks resulting in the worst start to a quarter for stock-market bulls ever.
The Dow Jones Industrial Average ended around 974 points lower, down 4.4%, near 20,943 while the S&P 500 lost about 114 points, or 4.4%, closing near 2,471. The Nasdaq Composite closed near to 7,361, off around 340 points, or 4.4%. Stocks have fallen sharply in late February and March with the S&P 500 marking up a 20% quarterly decline, its largest since the GFC and the Dow dropping more than 23% for its biggest first-quarter decline on record and largest quarterly fall since 1987.
COVID-19 cases on the rise
New daily confirmed European COVID-19 cases continued to lift sharply. Despite some expectations amongst modellers that the peak in the virus could come in the next 10-14 days, the worryingly high data and lack of uniformity imply restrictions will remain in place for many weeks. Germany extended its lockdown until April 19 and Italy extended until April 13. Governments will review the lockdowns after Easter, but they are unlikely to risk removing them too early as that could invalidate a lot of the progress that the lockdowns are hopefully making.
DJIA levels
The daily chart shows the DJIA correcting higher overall with a 20 exponential moving average acting as resistance. On the hourly chart, however, we have moving key averages acting as classic supports which points towards a period whereby the DJIA will be consolidating for now. A break above or below the 22500 and 21600 levels respectively are of mind while a test and hold above 22500 will allow prices to move higher towards 22700 as long as 21600 stays intact on the downside.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.