DJIA Dove 1,000 Pts as Investors Sought Safe-havens in Light of Rise in Virus Cases


Monday, Wall Street’s 3 major stock market indexes fell as investors moved to safe-havens after a rise in coronavirus cases outside China caused worries about the global economic impact of a potential pandemic.

Note: WHO removed pandemic from the virus’ and downgraded to emergency Sunday.

Wall Street’s 3 Key indexes marked record highs last week on optimism that the global economy, supported by central banks, would be able to snap back after short-term weakness related to the virus.

The S&P 500 fell below its 50-Day MA and the DJIA fell below its 100-Day MA, both closely watched technical indicators.

The DJIA fell 1,031.61 pts, or 3.56%, to 27,960.8, the S&P 500 dropped 111.86 pts, or 3.35%, to 3,225.89 and the NAS Comp dove 355.31 points, or 3.71%, to 9,221.28.

US Treasury yields fell to their lowest marks since Y 2016 as investors sought safety in government bonds, while the yield curve inversion between the 3-month and 10-year Treasuries deepened in what some see as a recession forward indicator.

Spot gold prices rose for a 5th session running and tapped a 7-yr high while the US 30-year T-Bond yield set a record low.

MSCI’s global gauge of stocks was down 2.8%.

The CBOE Volatility Index, VIX, a gauge of investor fear registered its biggest 1-day rise since February 2018 and ended the day at 25.03, its highest closing level since January 2019.

Declining issues outnumbered advancing ones on the NYSE by a 6.74-to-1 ratio; on Nasdaq, a 6.02-to-1 ratio favored decliners.

The S&P 500 posted 7 new 52-week highs and 23 new lows; the NAS Comp recorded 21 new highs and 154 new lows.

On all US exchanges, 10.51-B shares changed hands, compared with the 7.79-B average for the last 20 sessions

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral

  • NAS Comp +2.8% YTD
  • S&P 500 -0.2% YTD
  • DJIA -2.0% YTD
  • Russell 2000 -2.4% YTD

Looking ahead: Investors will receive the Conference Board’s Consumer Confidence Index for February, the FHFA Housing Price Index for February, and the S&P Case-Shiller Home Price Index for December Tuesday.

Stay tuned…