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/2020/05/13/market-snapshot-stocks-slump-at-the-open-as-36-million-jobs-vanish-in-wake-of-coronavirus-trump-turns-hawkish-on-china/meta-wp-cache-a0fb43354a55546f9c27dcfdc5dc43dc.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: Stocks slump at the open as 36 million jobs vanish in wake of coronavirus, Trump turns hawkish on China – Forex Brasil

Market Snapshot: Stocks slump at the open as 36 million jobs vanish in wake of coronavirus, Trump turns hawkish on China

The Dow on Wednesday slumped 516.81 points, or 2.2%, to finish at 23,247.97, wile the S&P 500 gave up 50.12 points, or 1.8%, to close at 2,820. The Nasdaq Composite slumped 139.38 points, or 1.6%, ending at 8,863.17.

What’s driving the market?

In U.S. economic data, weekly jobless claims rose by 2.98 million in the week ended May 9, slightly worse than consensus forecast. The new claims also brought the coronavirus crisis total to nearly 36.5 million over the past two months, by far the biggest loss in U.S. history, sending the unemployment rate up to over 15%.

Analysts said stocks have stalled on growing concerns that historic stimulus efforts by central banks and governments won’t be enough to ensure a rapid, or V-shaped, rebound from the economic hit by putting major economies in a virtual deep freeze in an effort to contain the pandemic.

See:U.S. states start to reopen, ending coronavirus lockdowns: Wisconsin top court strikes down stay-at-home order

For weeks, markets have remained buoyant even in the face of staggering job losses. But as corporate earnings reporting season winds down, investors are left in an information vacuum, said Diane Jaffee, senior portfolio manager at TCW. “That’s when the macro noise takes over.”

For all the questions about the post-COVID-19 landscape, Jaffee believes multiple signals show the economy has hit bottom, and is starting to grind higher, albeit from a depressed base. The energy sector has provided some tailwind so far in the second quarter, and investors may look to the early release of bank stress tests for some confirmation of the health of financials, Jaffee said in an interview.

Soaring unemployment around the world and a wave of bankruptcies are accompanied by a lack of certainty about when things will “go back to normal” and whether there will be a second wave of infections as economies attempt to rebound, said Fawad Razaqzada, market analyst at Think Markets, in a note.

“So, while central banks and governments are doing all they can to address the supply side of the economy, demand from households and businesses could nonetheless remain soft for a long time and undermine economic recovery,” he said.

Federal Reserve Chairman Jerome Powell on Wednesday urged lawmakers and the White House to boost spending to help make sure that earlier efforts to bolster the economy in the face of the pandemic would bear fruit. The Fed chief warned that the recovery “could come more slowly than they would like” and would require policy makers to do more.

Read:There is a growing sense recovery will be slow, Powell says

Which companies are in focus?
How are other markets trading?

Crude-oil prices rose on news of production cuts, with West Texas Intermediate Crude for June delivery CLM20, +3.16% up 2.7% to $25.97.

The price of an ounce of June gold rose $27, 1.6%, to $1,743.90 GCM20, +1.39% .

The benchmark U.S. 10-year Treasury note TMUBMUSD10Y, 0.613%ticked down 4 basis points to about 0.616%.

The dollar strengthened 0.2% against a basket of currency trading partners, according to the US Dollar Index DXY, +0.04% .

European stocks were lower: the STOXX Europe SXXP, -2.89% fell 3.2%.

In Asia overnight, the Hong Kong Hang Seng HSI, -1.45% fell 1.5%.

Related:What’s the most shorted sector? The answer might surprise you

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