Thursday's Market Recap - Blockbuster 1800 Point Loss Rattles Wall Street Bulls.
What is The Premarket Telling Us?
7:00 AM.
US stock futures are sharply negative at this point. Dow futures down 502 points, Nasdaq futures down 109 points, and the S&P futures down 47 points. Asian markets ended their session lower.
On The Bond Desk:
The US 10 Year Bond Yield at 0.75%, down 0.08%.
Currency Desk:
Euro dollar: 1.13
UK Pound: 1.27
Crude Oil:
WTI crude oil futures at $38.37/barrel, down 3.11%.
On the Earnings Calendar:
None
In M&A News:
None.
What About The Asian And European Markets?
Major Asian markets sold off overnight. Japan (Nikkei 225) down 2.82%, Shanghai down 0.78%, Hong Kong (Hang Seng) down 2.27%.
Major European markets also suffered heavy losses . German (DAX) down 4.47%, France CAC 40 down 4.71%, London FTSE 100 down 3.99%.
Market And Sector Dynamics
As indicated by the futures earlier, markets opened sharply lower, with the Dow down 900 points, Nasdaq down 225 points, and the S&P down 85 points. This week's initial jobless claims showed another 1.542 million newly unemployed Americans applied for unemployment benefits, which was slightly better than expected.
Fear of a second outbreak of Covid-19 infection due to reopening is gaining traction, with new spikes in cases in Arizona, Florida and Texas, and a few southern States.
Markets have run up in the last few weeks, leading many to conclude that, the market may be overvalued and frothy, and therefore is ready for a correction.
Stock continue its steady decline throughout the session to close just off the lows of the day.
The sell off was broad based and deep, with all eleven S&P sectors recording sharp declines, led by Energy 9.45%, Financials 8.18%, Basic Materials 7.74%, Industrials 7.05%, Real Estate 6.26%, Technology 5.81%, Healthcare 5.63%, Consumer Discretionary 4.91%, Utilities 3.98%, and Staples 3.81%..
Factors Influencing Today's Market
Stock sold off on fear of new surge in Covid-19 infections in a few States.
Investors fear market have become overbought and frothy.
This week's initial jobless claims showed 1.542 million new claims for unemployment.
WTI crude oil closed today at $35.66/barrel, down 9.95%, and with it oil service and energy related companies
US 10 Year Bond Yield closed at 0.666%, down 9.58%.
Market Close Volume Traded And Advance Decline Ratio
The bull took a severe flogging today, which saw the Dow tanking 1861.82 points, Nasdaq sank 527.62 points, and the S&P lost 188.04 points.Total NYSE volume traded, a moderate 6.61 billion shares. Declining shares outpaced Advancing shares by 2.69:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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