U.S. Stocks Drop on Tariff, Virus Woes; Oil Falls: Markets Wrap

 

 

 

These are the main moves in markets:

Stocks

• The S&P 500 Index dipped 0.77% as of 9:45 a.m. New York time.
• Nasdaq 100 Index decreased 0.2%.
• The Stoxx Europe 600 Index decreased 1.5%.
• The MSCI Emerging Market Index was little changed.

Currencies

• The Bloomberg Dollar Spot Index climbed 0.2%.
• The euro dipped 0.2% to $1.1282.
• The British pound declined 0.2% to $1.2491.
• The Japanese yen weakened 0.2% to 106.70 per dollar.

Bonds

• The yield on 10-year Treasuries advanced two basis points to 0.73%.
• The yield on two-year Treasuries advanced one basis point to 0.19%.
• Germany’s 10-year yield climbed two basis points to -0.39%.
• Britain’s 10-year yield gained two basis points to 0.23%.

Commodities

• Brent crude decreased 1.7% to $41.90 a barrel.
• Gold strengthened 0.3% to $1,773.87 an ounce.
• Iron ore surged 2.4% to $101.71 per metric ton.

Here are some key events coming up:

• The IMF will release new 2020 growth projections on Wednesday.
• U.S. jobless claims, durable goods and GDP data are due Thursday.
• A rebalance of Russell indexes is due on Friday.

U.S. stocks fell and European equities slumped the most in a week as the Trump administration considered fresh tariffs and a resurgence in virus cases around the world sharpened concern about the pace of the economic recovery.

The S&P 500 snapped a two-day advance. Travel stocks and other companies that stand to benefit from life returning to normal fared worse. Oil slid below $40 a barrel in New York and gold steadied at $1,770 an ounce. The tech-heavy Nasdaq indexes were little changed as investors continued to favor companies with fortified balance sheets and better prospects in a stay-at-home economy. Zoom Technologies and Peloton Interactive advanced.

Market sentiment is turning more negative on concern that the spreading coronavirus could force policy makers to slow the pace or reverse business re-openings. At the same time, there’s the potential for trade tensions to resurface between the European Union and the U.S.

“The outbreaks have given markets the unpleasant reminder that the pandemic is far from over and that the economic recovery may be slower than expected,” said Mobeen Tahir, associate director of research at WisdomTree in London. But the downturn would only become serious “if infection rates rise to alarming levels and sweeping lockdowns are enforced again.”