Day Traders Diary
The Dow sank over 2000 points as the major averages had their worst day since 2008 as fears about the spread of the new coronavirus and an oil price war sent investors scrambling out of stocks.
The Dow dropped 2,013.7 points or 7.79%, the S&P 500 plunged 7.6% to 2,746 as investors punished financials and energy stocks. Energy names in the S&P 500, including Exxon Mobil, Hess and Marathon Oil, finished the day down more than 20%. Financial stocks ended down more than 10%.
The Nasdaq Composite fell 7.29% to end the day at 7,950.68.
The massive sell-off triggered a key market circuit breaker minutes after the opening bell. Trading was halted for 15 minutes until reopening at 9:49 a.m. ET. The sharp declines on Monday followed a roller-coaster week that saw the S&P 500 swing up or down more than 2.5% for four days straight.
Investors continued to seek safer assets amid additional fears that the coronavirus will disrupt global supply chains and tip the economy into a recession. The yield on the benchmark 10-year Treasury note dropped below 0.5% for the first time ever, while the 30-year rate breached 1%. At one point early Monday, the 10-year slid to 0.318%.
Gold, another safe-haven asset, crossed $1,700 an ounce, hitting its highest level since December 2012. Copper prices hit a more than three-year low of $2.46. Copper is seen as a barometer of broad economic demand given its applications in electrical equipment and manufacturing.
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