S&P 500 index loses over £1.6 trillion in value as Coronavirus threatens to push the global economy into recession
- S&P 500 index loses over £1.6 trillion in value as Coronavirus threatens to push the global economy into recession.
- Apple, Microsoft, & Amazon reported a combined loss of around £250 billion in market value.
- Another 1,000 point drop in Dow Jones will remove all gains that it posted during Trump's tenure.
With COVID-19 threatening to push the global economy into recession and disrupting business operations across the world, the benchmark S&P 500 index lost over £1.6 trillion in value as the market opened on Monday.
The three primary U.S stock indices saw a trading halt for fifteen minutes on Monday that marked third such instance in the past six days. An automatic cutout was triggered in the S&P 500 index as it dropped by a massive 8% within a few minutes.
Apple, Microsoft, & Amazon Report A Combined Loss Of Around £250 Billion In Market Value
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
The U.S Federal Reserve opted for a second emergency rate cut to 0.25% on Sunday hinting at worsening economic conditions that stirred further panic in the financial markets. Financial stocks that are known to be rate-sensitive such as .SPSY tanked 12.6% on Monday and contributed the most to SPX’s decline. Following in its footsteps were the energy stocks .SPNY that slumped 10% while an identical decline was also reported in technology stocks .SPLRCT.
Apple Inc. (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) reported a combined loss of around £250 billion in market value. Sources from Wall Street revealed the fear gauge at 70.83 as it climbed 13 points on Monday.
Monday also brought an 8% decline in world stocks and a 10% drop in oil prices. Following Spain and France resorting to a virtual lockdown to contain the spread of Coronavirus, safe-haven gold also took a blow earlier this morning. In the U.S, theaters, restaurants, movie houses, and bars have been closed in Los Angeles and New York.
At the time of writing, the Dow Jones is down 10.03% (2,326.15 points) at 20,859.47. The S&P 500 index has lost 263.50 points (9.72%) so far and is currently at 2,447.52. Lastly, losing 9.49% (747.03), the Nasdaq Composite is currently at 7,127.84.
S&P 500 Index Records No New 52-Week High And 314 New Lows
Another 1,000 point drop in Dow Jones will remove all gains that it posted during President Trump’s tenure. SPX recorded 314 new lows while no new high (52-week) was reported. Nasdaq, on the other hand, posted 1,092 new lows and only two new 52-week highs.
SPX retail index or .SPXTR saw a 9.3% decline on Monday as majors like Nike, Under Armour, and Lululemon Athletica announced plans of closing all stores in multiple markets including the U.S.
.SPCOMAIR (SPX airlines index), on the other hand, rallied 16.3% down this morning as United Airlines recorded an over £1.2 billion drop in its monthly (March) revenue. The U.S carrier also said that its flights are likely to be nearly empty in 2020’s summer.
Lastly, cruise line operators like Royal Caribbean Cruises and Carnival Corp noted an over 13% drop on Monday.