Warning: file_exists(): File name is longer than the maximum allowed path length on this platform (260): C:\zpanel\hostdata\zadmin\public_html\forexbr_com_br/wp-content/cache/supercache/www.forexbr.com.br/2020/03/19/market-snapshot-dow-sinks-600-points-in-turbulent-friday-trade-as-investors-watch-for-further-coronavirus-stimulus-plan/meta-wp-cache-c1c6d0a354660b28373cfe041b37d0b6.php in C:\zpanel\hostdata\zadmin\public_html\forexbr_com_br\wp-content\plugins\wp-super-cache\wp-cache-phase2.php on line 71 Market Snapshot: Dow sinks 600 points in turbulent Friday trade as investors watch for further coronavirus stimulus plan – Forex Brasil

Market Snapshot: Dow sinks 600 points in turbulent Friday trade as investors watch for further coronavirus stimulus plan

U.S. stock indexes were bouncing around midday Friday in volatile trading, as investors weighed the acceleration of the global death toll due to COVID-19 against efforts by governments and central banks to contain the economic impact of the pandemic.

How are major benchmarks performing?

The Dow Jones Industrial Average DJIA, -0.68% was down more than 300 points, or 1.5%, at 19,790, after touching an intraday high at 20,531, while the S&P 500 index SPX, -0.83% was at 2,354, down 53 points or 2.2%. Meanwhile, the technology-heavy Nasdaq Composite Index COMP, +0.14% was off 117 points to reach 7,031, a decline of 1.6% after hitting a high at 7,354.

On Thursday, the Dow gained 188.27 points, or 1%, to 20,081.19. The S&P 500 rose 0.5%, or 11.29 points, to close at 2,409.39. The Nasdaq Composite Index advanced 160.73 points, or 2.3% to end the session at 7,150.58.

For the week, the Dow is on track for a 12.3% weekly decline, the S&P 500 was set to fall 10.2% on the week, while the Nasdaq was looking at a 7.3% weekly drop.

What’s driving the market?

Lawmakers in Washington, D.C., were hurrying to assemble a second bailout package to help lessen the current and anticipated economic pain from the pandemic.

“It would appear all the various measures taken by governments and central banks recently is finally calming the markets down,” wrote David Madden, market analyst at CMC Markets U.K., in daily research note.

On Friday, President Trump said that interest on student loans would be waived temporarily and earlier, Treasury Secretary Steven Mnuchin said that the U.S. tax filing day in the U.S. would be moved to July 15, extending the deadline from April 15.

Meanwhile, Mitch McConnell, the Republican Senate Majority Leader, on Thursday introduced a stimulus package that could top $1 trillion and would include direct payments of $1,200 for individuals and with married couples eligible to for $2,400, according to the Wall Street Journal.

More than 14,000 cases have been confirmed in the U.S. along with over 200 deaths, according to data from Johns Hopkins University. Globally, more than 245,000 cases have been confirmed.

The Senate proposal comes as reports show that jobless claims could soar to more than 2 million by next week, according to a research report analysts at Goldman Sachs.

A Thursday a report on claims from those seeking unemployment benefits showed that 281,000 Americans filed for unemployment insurance for the first time in the March 14 week, the highest since 2017.

Attempts to soften the blow to businesses and individuals also come as California on Thursday ordered its roughly 40 million residents to remain at home to help limit the spread of the pathogen. California Gov. Gavin Newsom estimated that more than half of the Golden State’s residents will be infected by COVID-19 over an eight-week period.

The stock market is also grappling with Friday’s “quadruple witching” options expiration day which has led to about 50% higher daily volume than average.

On Wednesday, the Dow closed below 20,000 for the first time since February 2017. Investors hope that level was the bottom and that the stock market can recover as virus cases peak in the coming months and government aid packages take effect. The Dow remains 32% below its all-time high level from February, while the S&P 500 is 29% below its high.

In economic news, sales of previously owned U.S. homes surged in February to a 5.77 million annual rate, according to National Association of Realtors data released Friday, representing the fastest pace in 13 years.

See:Mortgage rates surge to highest level since January even though the Fed just brought interest rates to 0%

How are other markets trading?

The yield on the benchmark 10-year Treasury note TMUBMUSD10Y, -19.85% fell 12 basis points to 1% on Thursday.

West Texas Intermediate crude, the U.S. gauge of oil prices, CLK20, -3.67% was 72 cents, or 2.6%, lower at $25.19 a barrel after its best daily gain on record on the New York Mercantile Exchange, punching higher from its lowest level since 2002 on Wednesday.

In precious metals, gold futures for April GCJ20, +0.39% rose $15.90, or 1.1%, to settle at $1,493.60 an ounce on Comex, after a slight gain of 0.1% on Thursday.

The ICE U.S. dollar index, DXY, -0.13% which tracks the greenback’s performance against a basket of currency trading peers, rose 1.4%, adding to a string of gains.

Japan’s Nikkei Index NIK, -1.04% was closed in observance of the Vernal Equinox. Meanwhile, China’s CSI 300 000300, +1.79% gained 1.8%, while the Shanghai Composite Index SHCOMP, +1.61% closed up 1.6% and the Hang Seng Index HSI, +5.05% in Hong Kong surged 5.1%, while Korea’s Kospi Index 180721, +7.44% closed 7.4% higher.

The Stoxx Europe SXXP, +1.82% traded 2.6% higher, while the FTSE 100 FTSE, +2.47% added 1.8%.

Which stocks are in focus?

Shares of FedEx Corp. FDX, -0.69% were up 5.6% in Friday action as delivery companies perform well during the coronavirus outbreak.

Shares of Amazon.comAMZN, -0.34% were up 2% for the same reason.

Shares of meal-kit company Blue ApronAPRN, -20.43%, however, were down more than 27% on the day but up 360% for the week.