US stock market weekly update
“Stocks on Friday plunged to a three-year low, closing out their worst week since the 2008 financial crisis and obliterating all of the gains made since President Donald Trump was inaugurated, as investors weighed the escalating coronavirus outbreak against vast stimulus measures designed to mitigate the crisis.
The losses, which came to more than 4% for the S&P 500 and Dow during Friday’s session alone, brought the S&P 500’s total weekly losses to 15% for its worst weekly performance since October 2008. The Dow swan-dived 17.3% on the week, with all the benchmarks settling at their lowest levels since early 2017.” Yahoo Finance
The US stock market had very steep losses for the week ending on Friday, March 20. All major stock market indexes hit a three-year low. The Federal Reserve cut rates by 100 basis points, with the benchmark Fed fund rate to a range of 0% to 0.25%. The US government said it will apply a huge stimulus plan, estimated at more than $1.0 trillion to boost the economy and support the workforce. It is too risky to make any prediction now if the stock market is bottoming. The reason for that is that panic, fear and extreme volatility are all present and dominant in the global financial markets. And from fundamental analysis, all estimates about what the real negative impact on both the economy and stocks will be are just estimates. We will have to wait at least three consecutive quarters to evaluate the impact of the coronavirus crisis on the global economy and the US economy.