Oil Price War Adds to Investor Worries

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as oil price war adds to investor worries. 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 futures tumble 900 points as all-out oil price war adds to coronavirus stress

Stock futures fell in overnight trading Sunday as investors continued to brace for the economic fallout from the spreading coronavirus, while a shocking all-out oil price war added to the anxiety. Futures on the Dow Jones Industrial Average dropped more than 900 points. The S&P 500 futures also indicated a 4% drop at the open on Monday.

The S&P 500 (SPY) dropped a whopping -7.60% today. All 11 sectors landed deep in the red. Energy (XLE) lost -20.14%. Financials (XLF) gave back -10.72%. Industrials (XLI) and materials (XLB) fell by -9%. Real estate (XLRE) and technology (XLK) -7%. Communication services (XLC) and consumer discretionary (XLY) -6%. Healthcare (XLV) and utilities -5%. Consumer staples (XLP) -4%.

The Dow Jones index lost -2013 points (7.79%) to close at 23,851. The Nasdaq gave back -624 points (-7.29%) to settle at 7,950

Oil Price War Adds to Investor Worries

Stocks sank Monday after a combo of an oil price war and growing coronavirus cases leave investors scrambling toward the exit.

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%.

Much of Monday’s anxiety came after Saudi Arabia on Saturday slashed official crude selling prices for April in a sudden U-turn from previous attempts to support the oil market. The move came after OPEC talks collapsed Friday, prompting some strategists to see oil prices crater to $20 per barrel this year.

Investors have already been on edge about the coronavirus outbreak that caused major stock averages to tumble into correction territory. As of Monday, global cases of the infection have climbed to more than 111,000 with at least 3,800 deaths around the world. The situation is also worsening in the U.S. with New York, California and Oregon all declaring states of emergency.

The Federal Reserve announced an emergency rate cut last week to combat the economic impact from the virus, its first such move since the financial crisis. President Donald Trump on Friday signed a sweeping spending bill of an $8.3 billion package to aid medical research.

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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3/9/20

S&P 500 Sector Graph

Oil Price War Adds to Investor Worries

S&P 500 (SPY)

Oil Price War Adds to Investor Worries

Communication Services (XLC)

Oil Price War Adds to Investor Worries

Consumer Discretionary (XLY)

Oil Price War Adds to Investor Worries

Consumer Staples (XLP)

Oil Price War Adds to Investor Worries

Energy (XLE)

Oil Price War Adds to Investor Worries

Financials (XLF)

Oil Price War Adds to Investor Worries

Real Estate (XLRE)

Oil Price War Adds to Investor Worries

 

 

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)


S&P 500 Sector Heat Map

 

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