WSJ: “Stocks Plunge 10% in Dow’s Worst Day Since 1987. For the day, the Dow industrials shed 2,352.6 points, or 10% to 21,200.62. The S&P 500 sank 260.74 points, or 9.5%, to 2,480.64. And the Nasdaq Composite slid 750.25 points, or 9.4% to 7,201.80.

Companies most exposed to the coronavirus outbreak were particularly hard hit, and airline and cruise shares helped lead the tumble. United Airlines Holdings dropped 25%, Delta Air Lines fell 21%, and Spirit Airlines tumbled 33%. Royal Caribbean Cruises plummeted 32%. On Thursday, Princess Cruises canceled all voyages for the next two months after two of its ships suffered coronavirus outbreaks.

But few parts of the market were immune. All 11 sectors of the S&P 500 tumbled, with losses led by the real estate and industrial sectors. Even companies that investors thought would reap the benefits of the virus tumbled. Clorox ended the day down 6.3%. Gilead Sciences, which has started testing a virus treatment, fell 6.1%. all three major indexes are down more than 16% for the week.”

We have no idea what is going on, but this is very odd.

3 Responses to “2,352.6”

  1. feeblemind Says:

    MIT Biologist says Wuhan virus fear mongering is a fraud to manipulate


  2. Neil Says:

    Trump said last night that this is not a financial crisis, but I’m not sure that’s true. The European banking system has been in trouble for some time, perhaps that’s coming to a head now. The Fed is dumping money into the repo market like it’s going out of style.

  3. feeblemind Says:

    It’s beginning to look like a full blown panic in the markets. Everything is down as people stampede for the exits. It appears to be a, “Get me out, get me out, just get me out!” mentality. I am given to understand there is support for the market at 20,000. Will that number hold or will the index crash through that floor?

    One wonders if the coronavirus panic will be the straw that breaks the back of the world financial system? Money has been printed and liquidity preserved across the globe for a dozen years now, with ever increasing debt buying slower and slower growth. Couple that with Marginal Revolution’s comments about this perhaps being a cascade event and it makes for a white knuckle ride.

    OTOH, perhaps the stock market will come roaring back like it did in 2009?? Do investors still have the confidence to make that happen?

    My magic 8-ball says, “Outlook not so good.” I hope it is wrong.

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