Dow Jones loses 352 points and signals another day in the red zone for Wall Street

Wall Street contracted again on early Thursday morning with the major U.S stock indices losing traction as Coronavirus continues to wreak havoc on the global economy. Dow Jones Industrial Average futures were seen 352 points down on Thursday morning and hinted that the index is likely to open around 250 points down and signaled another day in the red territory.

Thursday morning data from the S&P 500 and Nasdaq futures also remained under pressure and failed to stir any optimism for Wall Street on Thursday. Towards the end of Tuesday, Wall Street had recovered around 6%. The gain, however, was largely unsustainable with Dow Jones losing 6.3% again on Wednesday. The S&P 500 index also dropped by 5.2% on Wednesday.

Dow Jones Loses All Gains That It Recorded During Trump’s Tenure

The Coronavirus driven downward rally has wiped all gains from Dow Jones that it posted during Trump’s tenure. The S&P 500 is trading around 30% down as compared to a record high printed in February.

The massive hike in Treasury yields is also contributing to investors’ anxiety. Treasury Yields were previously reported near record lows. On Tuesday, however, it rebounded over 30 basis points. The increase extended into Wednesday with another expansion of 22 basis points that recorded the Treasury rate at 1.18%.

In order to offer sufficient support to the U.S economy amidst the Coronavirus crisis, the U.S Federal Reserve resorted to two emergency rate cuts in March. Chairman Jerome Powell of the U.S Fed also accentuated at the start of March that the central bank has decided in favor of adding £870 billion stimulus via asset purchases for sustained economic growth.

NYSE Shifts Entirely To Electronic Trading Amidst Coronavirus Pandemic

In its latest attempt to minimize the fast transmission of Coronavirus, the New York stock exchange also declared on Wednesday that its historic trading floor will temporarily be shut down as it switched entirely to electronic trading. As per the NYSE, electronic trading will be opened to the public on March 23^rd.

All in all, Wall Street has remained largely volatile in the past few days. The benchmark SPX index has rallied 4% or higher in either direction in the past eight sessions in a row. Apart from adding fiscal stimulus, the global community is expanding travel ban and business shutdowns (temporary) to combat the Coronavirus.