Seen to Nosedive Are the Stocks on Dow’s Worst Day Since 1987
What is the current trading values after the COVID-19 pandemic? How are the global economies reacting to the tradeoffs? A quick brush through the facts.
What Is Happening In Trading Markets?
Similar to the cryptocurrency trading, it was just terrible that during the wild trading session, the Dow Jones Industrial Average, was seen to drop by just under 10% was the largest single-day percentage decline since the crash of the stock market in 1987. While it was seen that investors shrugged off news that the Federal Reserve while stepping in to offer nearly $ 1.5 trillion in emergency relief as major indexes’ falling sharply after President Donald Trump was addressing the nation to outline government’s continued response to the novel coronavirus outbreak. The following are the major American indices:
- The Dow fell by 9.99% or 2,352.60 points to close at 21,200.62
- The Nasdaq tumbled 9.43%, or 750.25, to close at 7,201.80
- The S&P 500 dropped 9.5% or 260.74 points to close at 2,480.64
Why The Sell-Off?
It was seen popularly that the investors continually went on a selling streak where any short term gains from the federal reserve’s efforts were caught to be reversing the slide while it may not be able to bolster short and long term health of the American and global economy. Of course, it is a truth that the American and global economies are incredibly linked.
According to the director of global economics at Citi Research, Ebrahim Rahbari, the continued emphasis that the fed acts aggressively as well as in a particular central bank focused on safeguarding market functioning at this point and is said to continue providing liquidity in a scale. This is despite the sharp initial risk rally where we think these measures are still not being sufficient to durably stabilize market sentiment yet to be in light of credit concerns and escalating health concerns.
Many of the American institutions are now being disrupted by the efforts on way to mitigate the spread of this novel coronavirus sweeping the country with the Broadway shut down, major sports events are canceled and entire seasons are being put on hold.
The other industries hit particularly hard are the airline and travel industry with the share of United Airlines down 12.26% and American Airlines dropping 17.28% as of the market close. While it is the airlines bearing the brunt of a decision to ban travel between the US and Europe, for the coming 30 days, it has recently started canceling flights. It was also saying that it is temporarily canceling flights mainly between cities like Amsterdam and Orlando, Portland and Salt Lake City, the Delta has also canceled flights to Paris from Cincinnati, Raleigh/Durham, and Indianapolis.
It is in this circumstance that investors took to the hills yet again as the time is ahead of the country is ready to truly ramp up the COVID-19 testing regime. From the rout, the cryptocurrencies were also not safe as Bitcoin and all other cryptocurrencies suffered worst declines in years as the investors also sold heavily where SaaS shares were down over 8% and the after-hours slack’s earnings failed to excite with the equity being sold off. To sum up, in case you are looking for a silver lining, there isn’t one today. It is unless you shorted oil a month ago.
Bitcoin Is Also Facing A Very, Very Bad Day
Going through a remarkably bad day, Bitcoin turns out all assets having a rough month while including cryptocurrencies. While on the CoinGecko, 1 BTC was worth around $ 7,250 across the different exchanges, the price further dropped to $ 6,160 for 1BTC. Since then the Bitcoin never recovered as1 BTC is now exchanged for $ 6,150.
While this did not simply happen as an accident, Bitcoin is steadily going down for the past month while receiving over $ 10,000 by selling 1 BTC.
As the world health organization officially brought out a declaration on the spread of the COVID-19 as a pandemic, the US took additional measures in combating the spread of coronavirus while including travel restrictions from Europe to the US. The Asian and European stock markets in this situation have had a rough trading day following the spread of the news.
The Concluding Words
It was believed by many that cryptocurrencies inversely correlated to stock markets where the economic confidence is hurting the cryptocurrencies. While it is the uncertainty that is leading to today’s crypto-asset sell-off, it was necessary to keep trading positions in risky assets with that being unclear whether the economy can recover from the coronavirus. To sum up, everything is red right now with popular cryptocurrencies such as Ethereum, XRP, and Bitcoin Cash down respectively 28.3 %, 23.2% and 31.1% over the past 24 hours.