NEW YORK – Wall Street accelerated losses on Friday at the close of a volatile session and its main indicator, the Dow Jones Industrials, fell 4.55% thus putting the finishing touch to its worst week recorded since 2008, largely due to Investor panic sales in the face of the coronavirus crisis, as governments and central banks try to contain their economic impact.
At the end of operations on the New York Stock Exchange, the Dow Jones index reacted strongly to the 11% drop in the price of Texas oil and ended up cutting 913.21 points, to 19,173.98 whole, mainly weighed down by the firms Walt Disney (-9.43%), 3M (-9.18%) and Coca-Cola (-8.44%).
For its part, the selective S&P 500 fell by 4.34% or 104.47 points, to 2,304.92; and the Nasdaq index fell 3.79% or 271.06 points; up to 6,879.52.
In the whole of this week, which started with a “black Monday” and has followed the rhythm of a roller coaster, the Dow has lost 17.30%, the S&P 500 14.98% and the Nasdaq 12.64 %.
The sectors of public services (-8.18%), essential goods (-6.53%) and real estate (-5.48%) were the most affected, and only the energy sector closed in green (0.96 %).
According to analysts, there was more volatility in the New York parquet than usual because different types of options and futures expired at the same time, which usually results in a higher trading volume and oscillations between the negative and positive terrain.
The S&P 500 index has declined by 7%, triggering a Level 1 Market Wide Circuit Breaker trading halt. US equity markets will resume after 15 minutes.
– NYSE 🏛 (@NYSE) March 18, 2020
The opening was mixed and the indicators came to operate in green, but investors bet on sales after the state of New York joined that of California, ordering the closure of all non-essential businesses and asking the population to withdraw. in their homes as much as possible to avoid coronavirus infections.
The federal government also agreed with Mexico to suspend non-essential border traffic, a measure similar to that agreed with Canada on Wednesday.
Towards the end of the session, the sinking of the Texas barrel, which stood at $ 22.53 after falling 11%, and almost 30% in the whole of the week, had a contagion effect towards the stock market.
The markets do not seem to calm down in light of the measures being taken by central banks and governments to combat the economic impact of the coronavirus, and less so in the face of forecasts by analysts such as those of Goldman Sachs, who estimate that next week unemployment claims in The US will skyrocket to about 2 million.
Last week there were 218,000 requests, the highest number since 2017.
In other markets, investors were turning to safe assets at the close of Wall Street, and the yield on the 10-year Treasury bond fell to 0.874%, while gold rose to $ 1,489 an ounce. The dollar gained ground against the euro, which was changed to $ 1.0685.