Bond yields sink, stocks fall as investors demand safety

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BREAKING: Bond yields fall to new record lows as investors worry that economic damage from the spreading virus outbreak will be worse than previously thought. The price of oil plunges 10%, its worst drop in more than five years.

“The bond market says the monster under the bed is much bigger and scarier than anyone expects right now,” said Ryan Detrick, senior market strategist at LPL Financial.

But the virus broke out of China, the number of infections has topped 100,000 worldwide and businesses are reporting hits to their earnings. Apple has said slowdowns in manufacturing iPhones in China is hurting its sales, and an airline industry group says the outbreak could erase as much as $113 billion in revenue.

Friday’s 1.7% drop for the S&P 500 was the latest swing in a remarkably turbulent week. It started off with a 4.6% jump on Monday, then fell 2.8%, rose 4.2% and fell 3.4%. Some investors at the time warned the market was too expensive. They said corporate profits would need to jump in 2020 to justify record prices. Wall Street was indeed forecasting a solid rise for this year, but the virus has put that under threat.

A boost for stocks came earlier this week after Congress agreed on an $8.3 billion bill to combat the coronavirus, which President Donald Trump signed Friday. But investors say a slowdown in the economy seems inevitable, and they need infection rates to slow before turning more optimistic. The yield on the 10-year Treasury dropped to 0.78% from 0.92% late Thursday. It rallied from as low as 0.66% earlier in the day, according to Tradweb.

 

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Will it be an economic crisis?

New world.

FuturesTrader71 The oil drop had more to do with a non-agreement by OPEC than anything else today, why do you have fear monger so much...

February as employers added 273,000 jobs, evidence that the economy was in strong. The unemployment rate fell to 3.5%, matching a 50-year low, down from 3.6%.

Don’t worry, we have “the greatest economy in the history of the world” so it’s fine right

And gas ⛽️ is still almost $3 a gallon.... F the oil companies

The US banking system is a mess again. Europe is 10 X worse thanks to Draghi who never cleaned up from 2008. Liquidity will be a problem by the summer. BelieveMe

How’s your 401K, US? Savings account ? Pension? Yeah, mine too. 🙀

'worst' drop? Why worst? Why not best drop? This planet is loaded with oil & gas. Abundance I'm sad that I live on this planet with you dumbfucks that want to live in a monopoly game. Pick a new commodity to chase ffs. Like Helium-3. AnachronisticAnthropos

Buy, buy, buy... You will thank me in ten years!

Worst drop for investors, best for consumers

TRUMP SUPPORTER: I don't care about his policies...my 401K is doing great under...wait...wut? Um, nevermind.

Nothing to see here

Investors are about to be brutally sodomized.

Whats wrong with lower oil prices? It means more money for travel, dining, and personal spending in general

my friend moved her 401k into bonds last year. told me she thought it was safer there.

Who would thought a bug would be responsible for the next financial crises!! Trump has a lot to answer for.

NBC29 Keep hoping AP

I knew this and most people who been paying attention to this knew what was happening back in January but nobody listened fake news right sadly this is the big one we've been hit with so many fakes when the real one comes No One Believes it

But, but...the POTUS , the great Cheater-in-Chief, our wanna-be crimelord and orange-hued dictator-can-King says it’s the best economy. THE best. This must be fake news and Hillary Obama’s fault.

Interesting info, Coronavirus transmits with genetic mutations..

It will all be okay. Chill bruh

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