Forex Marketz Daily Forex News – Fully Markets Update
On Monday, the Dow Jones Industrial Average (DJIA) plummeted over two thousand (2,000) points. This was Wall Street’s worst day since the global financial crisis of 2008 when Lehman Brothers collapsed.
Traders on Wall Street panicked as the price of crude oil cratered. Fears regarding the spread of the COVID-19 contagion are reaching a boiling point. This sent traders out of equities and into safe haven assets like U.S. Treasuries.
The Dow Jones Industrial Average (DJIA) fell 2,013.70 points. This was a selloff of 7.79 percent as shares of Wall Street staples like Boeing, Apple, Goldman Sachs and Caterpillar all moved sharply lower. The Dow closed at 23,851.02 and saw its worst day since October 15, 2008 when it fell 7.87 percent.
The S&P 500 also tumbled. The global benchmark shed 7.6 percent as the financial and energy sub-indices took major hits. Shares of Exxon Mobil and Hess each fell twenty percent. Financial plays shed over ten percent. This was the S&P 500’s worst day since December 1, 2008.
The tech heavy Nasdaq composite fell 7.29 percent to close at 7,950.68.
This massive, nearly unheard of selloff, triggered a market wide circuit breaker at the 9:49 am EST. All trading ceased for 15 minutes in order for traders to cool off and take a breather.
Wall Street Traders flee into Safe Haven Asset Classes
Traders flew into safety as the coronavirus continues to spread disrupting global supply chains and shuttering industry. There are concerns of a global recession as economies slow and show signs of contraction.
The benchmark ten year Treasury yield fell below 0.5 percent for the first time in recorded history. The thirty year Treasury note breached below one percent for a brief time. The ten year yield hit a low below 0.31 percent for a brief period.
Crude Oil Prices Crater as a Price War Starts
Much of the trepidation in the global financial markets stemmed from Saudi Arabia cutting prices and announcing they would increase production in April.
This comes after OPEC failed to reach a deal with non-member nations led by Russia, called the OPEC +, on further production cuts. The OPEC + alliance has crumbled. Traders are now watching to see who blinks first as oil prices sink as demand softens and the markets are over saturated with product.
