S&P 500 narrowly avoids a bear market as WHO declares coronavirus a global pandemic

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After an 11-year rally, Dow enters bear market territory

The Standard & Poor's 500 plunged again Wednesday but narrowly avoided its first bear market since the financial crisis.

The World Health Organization declared the virus a global pandemic Wednesday as the number of confirmed cases exceeded 121,000. Countries are shifting into damage-control as infections spread, prompting sweeping controls on travel, closures of schools and cancellations or postponements of sports events and many other public activities.

The speed of the market’s declines and the degree of its swings the last few weeks have rattled investors. It was only three weeks ago that the S&P 500 set a record high, and the Dow has had six days where it swung by 1,000 points since then. It’s done that only three other times in history. The Bank of England cut its key interest rate by half a percentage point to 0.25% as an emergency measure in response to the outbreak of the deadly virus. The central bank said the move would “help support businesses and consumer confidence at a difficult time.”

“Both the real economy and the financial economy are exhibiting acute signs of stress,” analysts at Goldman Sachs said in a note. “Supply chains have been disrupted and final demand has declined for many industries. Travel is contracting sharply as both individuals and businesses restrict movement.”

 

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Yeah being juvenile is hard

You trying to give Obama credit... bs propaganda. 🙄

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