Markets Getting No Break Despite Fed Action

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as markets getting no break despite Fed action. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow drops nearly 3,000 points, as coronavirus collapse continues; worst day since ’87

Stocks fell sharply Monday – with the Dow suffering its worst day since the “Black Monday” market crash in 1987 and its third-worst day ever – even after the Federal Reserve embarked on a massive monetary stimulus campaign to curb slower economic growth amid the coronavirus outbreak.

The S&P 500 (SPY) dropped a whopping -12% today. All 11 sectors finished deeply in the red. All 11 sectors finished -16% to -11%, check the sector graph below for specifics.

The Dow Jones index fell -2,997 points (-12.93%) to close at 20,188. The Nasdaq ended in the negative by -970 points (-12.32%) to settle at 6,904.

Markets Getting No Break Despite Fed Action

Stocks dropped like a brick Monday even after the Fed stepped in with a massive monetary stimulus to curb the economic slowdown caused by the coronavirus outbreak.

“The markets are getting no break with yesterday’s historic Fed actions and COVID-19 dominating the world’s headlines,” Frank Cappelleri, executive director at Instinet, said in a note. “While the news continues to worsen and with the price action doing things we’ve only seen a handful of other times in the last century, it’s nearly impossible to keep things in perspective.”

“We can’t argue the facts, and we’re dealing with a much bigger issue than just the economy,” Cappelleri said.

The Fed’s move, in tandem with headlines suggesting the White House is preparing a tax break for consumers and a bailout for the airlines industry, made some investors more optimistic on the market.

On Sunday, the Fed cut interest rates down to basically zero, their lowest level since 2015, and launched a massive $700 billion quantitative easing program. Trump said he was “very happy” with the announcement, adding: “I think that people in the markets should be very thrilled.”

However, news about the coronavirus outbreak did not help sentiment. U.S. cases have jumped to 3,774 and 69 deaths, according to Johns Hopkins University. The Centers for Disease Control and Prevention urged organizers to cancel or postpone events with more than 50 people. New York, New Jersey and Connecticut governors banned eating in restaurants and limited events to less than 50 people.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 movers.

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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3/16/20

S&P 500 Sector Graph

Markets Getting No Break Despite Fed Action

S&P 500 (SPY)

Markets Getting No Break Despite Fed Action

Communication Services (XLC)

Markets Getting No Break Despite Fed Action

Consumer Discretionary (XLY)

Markets Getting No Break Despite Fed Action

Consumer Staples (XLP)

Markets Getting No Break Despite Fed Action

Energy (XLE)

Markets Getting No Break Despite Fed Action

Financials (XLF)

Markets Getting No Break Despite Fed Action

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.

Real Estate (XLRE)

Markets Getting No Break Despite Fed Action

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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