- All the major three benchmarks, namely DJIA, SP500 and NQ100 register more than 3.0% losses.
- Increasing numbers of coronavirus cases and emergencies declared in the key US states renew risk-off.
- Global policymakers trying their best, the US jobs report awaited.
With the coronavirus-led risk aversion jumping back onto the front seat, Wall Street benchmarks fail to carry the previous day’s recovery by the end of Thursday.
The DJIA lost 970 points, 3.58%, to close at 26,121.28 whereas the Nasdaq Composite Index came in last with 3.10% loss, down 279.49 points, while closing around 8,738.59. Further, the S&P 500 Index also followed the suit by trimming 105.11 points, or 3.36%, to 3025.00.
The global investors turned furious with the first death in the UK, due to coronavirus (COVID-19), as well as news of emergency in California ahead of the rising toll in Seattle and King County. Also dimming the risk-tone was the BOC’s Poloz and BOE’s Carney while analysts at the Australia and New Zealand Banking Group (ANZ) also cite increasing odds of the Fed’s another rate cut due to the heightened pressure from the virus. Earlier during the day, the risk-tone remained mildly positive as market-players sensed help from the multi-billion fiscal stimulus from the US, Italy and Asia.
The US 10-year treasury yields struggled around the record low of 0.901 to 0.909 by the end of Thursday.
The Organization of the Petroleum Exporting Countries (OPEC) just crossed the wires stating 1.5 million barrels a day cut’s proposal for the OPEC+ group. This helps the oil prices, WTI currently around $46.07, to mitigate the risk-off declines.
On the data front, the US Factory Orders disappointed whereas the weakness in the Unit Labour Costs and Nonfarm Productivity joined the lines.
While the COVID-19 headlines are likely to be the key driver, markets will also follow the impacts of the US and Canadian employment data on Friday.
Read: US Non-Farm Payrolls February Preview: The first facts
DJIA levels
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