Stocks Enter Bear Market Territory

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as stocks enter bear market territory. 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 point to a loss of 400 points after Tuesday’s surge

U.S. stock futures fell sharply on Tuesday night, pointing to another volatile session on Wall Street following a massive rally. As of 8:21 p.m. ET Tuesday, Dow Jones Industrial Average futures were down 260 points, indicating a loss of 402.16 points at the open. S&P 500 and Nasdaq 100 futures also pointed to losses.

The S&P 500 (SPY) dropped -4.89% today. All 11 sectors finished deep in the red. Consumer discretionary (XLY), energy (XLE), financials (XLF), industrials (XLI), real estate (XLRE) and utilities (XLU) each suffered -5% losses. Communication services (XLC), consumer staples (XLP), materials (XLB) and technology (XLK) each had -4% losses. Healthcare (XLV) had a -3% loss.

The Dow Jones index plummeted -1464 points (-5.86%) to close at 23,553. The Nasdaq catered -392 points (-4.70%) to settle at 7,952.

Stocks Enter Bear Market Territory

Stocks sank on Wednesday as the spread of the coronavirus and the fiscal impact on the global economy had investors hitting the sell button.

Losses intensified on Wednesday after the World Health Organization declared the outbreak an official global pandemic. The number of coronavirus cases around the world totaled more than 100,000, according to data from Johns Hopkins University. In the U.S. alone, more than 1,000 cases have been confirmed. This increase in cases added to fears of a global economic slowdown and have increased calls for government intervention.

President Donald Trump suggested Tuesday a 0% payroll tax rate that could last until the end of the year. However, the timing of such policies being implemented remains uncertain. Sen. Chuck Grassley, who heads the Senate Finance Committee, said such a tax cut needed to be examined.

Central banks have also acted to curb slower economic growth. The Bank of England on Wednesday cut its benchmark rate by 50 basis points to 0.25%. The Federal Reserve also increased the amount of money it is providing to banks through overnight repo lending to $175 billion. This follows the Fed’s emergency half point rate cut last week.

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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3/11/20

S&P 500 Sector Graph

Stocks Enter Bear Market Territory

S&P 500 (SPY)

Stocks Enter Bear Market Territory

Communication Services (XLC)

Stocks Enter Bear Market Territory

Consumer Discretionary (XLY)

Stocks Enter Bear Market Territory

Consumer Staples (XLP)

Stocks Enter Bear Market Territory

Energy (XLE)

Stocks Enter Bear Market Territory

Financials (XLF)

Stocks Enter Bear Market Territory

Real Estate (XLRE)

Stocks Enter Bear Market Territory

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Stocks Enter Bear Market Territory

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

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