2 min
Castlestone Weekly Market Update 22nd February 2020 Castlestone Management
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- Inversión
U.S. Equities
Stocks suffered their biggest weekly loss since 2008 amid escalating fears surrounding the spread of the COVID-19 virus and the impact it will have on the global economy. The Dow Jones and S&P 500 fell for the seventh straight day and for the week the Dow closed down 12.4% to 25,409.36 and the S&P 500 fell 11.5% to 2,954.22. The Nasdaq closed slightly higher Friday breaking its streak of down days, finishing the week off 10.5% at 8,567.37. All three major US averages closed in correction territory.
Treasuries
Several member of the Federal Reserve, including Chairman Jerome Powell, suggested this week that an interest rate cut could be in the offering as they closely monitored the impact of the Coronavirus on the global supply chain. The 10-year Treasury note yield slid 34.3 basis points and the 30-year bond yield fell 55.9 basis points over the last five sessions. The 2-year note tumbled 47 basis points, its biggest weekly drop since the September 11, 2001 attacks.
Dollar
The risk off trade in equities and the all-time lows in bond yields put pressure on the Dollar over the week, pushing it to near three week lows.
Gold
Gold futures fell 5% last week, as investors took profit to cover margin calls in their equity positions. The April contract closed at $1,566.70 an ounce.
Crude Oil
Oil futures closed down 16% for the week, the largest weekly decline in more than 11 years, as the spread of COVID-19 virus globally called into question the near term demand for crude.
U.S. Equities
Stocks suffered their biggest weekly loss since 2008 amid escalating fears surrounding the spread of the COVID-19 virus and the impact it will have on the global economy. The Dow Jones and S&P 500 fell for the seventh straight day and for the week the Dow closed down 12.4% to 25,409.36 and the S&P 500 fell 11.5% to 2,954.22. The Nasdaq closed slightly higher Friday breaking its streak of down days, finishing the week off 10.5% at 8,567.37. All three major US averages closed in correction territory.
Treasuries
Several member of the Federal Reserve, including Chairman Jerome Powell, suggested this week that an interest rate cut could be in the offering as they closely monitored the impact of the Coronavirus on the global supply chain. The 10-year Treasury note yield slid 34.3 basis points and the 30-year bond yield fell 55.9 basis points over the last five sessions. The 2-year note tumbled 47 basis points, its biggest weekly drop since the September 11, 2001 attacks.
Dollar
The risk off trade in equities and the all-time lows in bond yields put pressure on the Dollar over the week, pushing it to near three week lows.
Gold
Gold futures fell 5% last week, as investors took profit to cover margin calls in their equity positions. The April contract closed at $1,566.70 an ounce.
Crude Oil
Oil futures closed down 16% for the week, the largest weekly decline in more than 11 years, as the spread of COVID-19 virus globally called into question the near term demand for crude.
2 min