February 23 – February 28 Week in review
It was a brutal week for stocks last week as the stock market endured its worst week since 2008 as coronavirus concerns and the economic impact gripped the markets. The S&P 500 fell 11.5% while the Dow Jones Industrial Average surrendered 12.4%, the Nasdaq 10.5% and the Russell 2000 12.0%.
The communication services sector was the only group with a slimmer loss than 10.0% while the remaining sectors retreated between 10.4%, for consumer staples, and 15.4%, for the energy sector.
Equities faced heavy selling pressure throughout the week as coronavirus related fears caught up with the market, which appeared immune to these concerns. The accelerating spread of the coronavirus outside of China was the main worry, leading to greater uncertainty about the viability of global supply chains. Intel ordered its employees to avoid travel to China and several other countries, but on the bright side, Apple CEO, Tim Cook, said on Thursday that his company is working toward resumption of full production.
U.S. health officials acknowledged that the coronavirus is likely to spread through the U.S., which contributed to the pressure on stocks. The CBOE Volatility Index jumped more than 23 points to 40%, ending last week at its highest level since February 2018 when an inverse volatility ETN imploded.
Treasuries charged higher throughout the week as investors sought a safer haven, sending the 2 year yield to 0.91% and the 10 year yield to a fresh record low of 1.13%.
In other markets WTI crude lost $8.54, or 16.0%, for the week, falling to its lowest level since late 2018. The U.S. Dollar index ended the week slightly lower at 98.13.
March 2 – March 6 Economic Calendar