US stocks spiked 9%+ as President Trump joined reassured investors that he is stepping up efforts to protect the economy from the coronavirus fallout.
All 3 major US stock market indexes rose 9%+, as President Trump declared a national emergency to help combat the virus and said the private sector will help with efforts to expand testing.
Treasury yields increased after the Fed said it is buying $37-B of bonds across maturities.
The CBOE Volatility Index (VIX 57.83, -17.64, or -23.4%)
At the 4:00p EDT closing bell, the DJIA was up 1,980 pts, or 9.3%, at 23,181, the S&P 500 up 228 pts, or 9.2%, at 2,709, the NAS Comp up 672 pts, or 9.3%, at 7,874.
Gold futures off 73.60 (-4.6%) to 1,516.70 oz, just over 9% lower on the week, .DXY higher by 1.2% at 98.69, WTI Crude Oil +0.23, or 0.7%, to 31.80 bbl Friday, but fell nearly 10.00, or 23.0% on the week
Advancers outnumbered decliners nearly 3-to-1 on the NYSE and about 2-to-1 on the NAS.
The S&P index recorded no new 52-wk high and 117 new lows, while the NAS logged 1 new high and 612 new lows.
President Trump said, “The Federal Reserve must FINALLY lower the Fed Rate to something comparable to their competitor Central Banks. Jay Powell and group are putting us at a decided economic & physiological disadvantage. Should never have been this way. Also, STIMULATE!“
Traders and investors now expect the Fed to cut its target rate from its current range of 1-1.25% to as low as 0-0.25%. Some market watchers wonder if the central bank could even eventually go into negative territory.
“Central banks must bolster confidence that they are willing to test the limits of where they view the effective bound on rates,” JPMorgan Chase economists said in a note this week
Stocks across the globe rallied back Friday. but hopes of more central bank stimulus and government spending went only so far and indexes posted large weekly drops after days of virus-related selling across market .
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral to Bullish and out of Bear market territory for the week ended 15 March 2020.
- NAS Comp -12.2% YTD
- S&P 500 -16.1% YTD
- DJIA -18.8% YTD
- Russell 2000 -27.5% YTD
Looking Ahead: Monday’s economic data will be limited to the release of the Empire State Manufacturing Survey and Net Long-Term TIC Flows.
Have a terrific weekend