Market Outlook

On Wednesday (March 25), the sentiment in the financial market is still optimistic, mainly looking forward to the $2 trillion stimulus plan, which will be agreed by both Republican and Democratic Party soon. However, at the end of the trading day, it is reported that there is a disagreement over the expansion of jobless benefits in the plan. The three major Wall Street indexes retraced from the top of the day.
On Tuesday (March 24), investors began to return back to the stock market after digesting the news of unlimited QE. With the hope that the Republican and Democratic parties will agree on the $2 trillion stimulus plan, the three major Wall Street indexes skyrocketed. The Dow rose more than 2000 points, up 11.4%, the biggest one-day percentage gain since 1933.
Monday (March 23) the global financial markets are still pessimistic. However, a breaking news rocked the market causing volatility. Before the US market open, the Federal Reserve (Fed) announced that it will implement an unlimited version of quantitative easing (QE). The Fed announced that it will buy assets like US Treasury and Mortgage-Backed Securities (MBS) “in the amounts needed” to deal with the coronavirus crisis.
On Friday (March 20), the financial market was gloomy again. The three major Wall Street indexes fell, and the Dow dropped below 20000 again. Although so many countries around the world have launched a series of stimulus plans, at the same time, more and more strict anti-epidemic measures have been implemented to restrict people movements and activities, which on the other hand is harmful to the global economy. The whole market is worried that the global economy will experience a severe recession.
The financial markets were panic again. Even though the Trump administration launched the economic stimulus package which over $1 trillion, it failed to relieve the worry of the global pandemic. The three major Wall Street indexes plummeted again, triggering the market halt again. The Dow once plunged more than 2000 points, eventually fell 6.3%, and closed below the 20000.
Trump administration is considering launching a massive economic response package, which is reported to be over 1 trillion USD, to stabilize the economy. The three major Wall Street indexes all rose over 5%, which the Dow has again over 1000 points move. At the White House press conference, the US Treasury Department announced that it would delay the filing of tax returns and even consider granting US $1000 to US citizens as a response to the impact of the current epidemic. In addition, the U.S. Federal Reserve further provides liquidity to the market by Emergency Lending Programs.
On Monday (March 16), the financial market was still panic. Global stock markets have dropped sharply like disaster. The Dow plunged near 3000 points, the biggest drop since 1987. Even though the Federal Reserve announced another emergency rate cut to zero, together with the $700 billion quantitative easing (QE), the three major Wall Street indexes plunged over 10%, triggering the fourth market halt in history. The S&P 500 index fell by about 12%. The Dow fell 2997 points, nearly triggering the second market halt in one day (if drop more than 13%).
Last Friday (March 13), US President Trump declared a state of emergency to respond to the coronavirus pandemic. The US government will prepare $50 billion fund to deal with the epidemic. He also said that 500,000 sets of virus detection reagents will be launched that inspiring the whole market sentiment. The three major Wall Street indexes closed near the day high, all rose more than 9%,the best daily performance since the financial crisis in 2008.
the financial market continued to collapse, the global stock market dropped sharply again and the three major Wall Street indexes all fell by nearly 10%. During the period, the market halt was triggered again and trading is suspended for 15 minutes. The Dow eventually fell 9.99% and fell more than 2350 points, the worst day since the stock market crash in 1987. The new coronavirus pneumonia epidemic continues. Investor confidence has been extremely low. Mo more detail about the stimulus policies, oil price war between Saudi Arabia and Russia, counterparty default risks are all the sensitive factors that make the market move.
On Wednesday (March 11), the market remained uncertain, the three major Wall Street indexes plunged sharply, which the Dow fell by 5.86%, more than 1,400 points, erased all Tuesday's gains. The WHO officially announced the new coronavirus (COVID-19) as a "global pandemic", once again hit the market sentiment. Also, there has no further details about the Trump’s policies, triggering market disturbing.