Week In Review 3.13.2020

U.S. equities posted their worst week since 2008 as volatility shook the markets and investors braced for weaker economic growth. Trading was halted for fifteen minutes twice during the week as indexes plunged shortly after the open. Wednesday marked the end of the longest bull market in history as the Dow dropped -10% and saw the largest sell-off since 1987’s Black Monday. European equities also had their worst day on record after President Trump announced a 30-day travel ban, and more European cities closed all businesses, except grocery stores and pharmacies.
As of Friday, the World Health Organization (WHO) had reported 138,000 cases of coronavirus globally and over 5,000 deaths. The WHO declared coronavirus a pandemic on Wednesday. Ireland cancelled its St. Patrick’s Day parades and all US sports leagues suspended their seasons in an effort to slow the spread. On Friday, President Trump declared a national emergency, freeing up $50B in aid to assist Americans affected by the outbreak. Stock indices soared after his address, posting their largest single-day gain since 2008.
Oil had another volatile week as Saudi Arabia initiated a price war after Russia refused to follow OPEC guidance of production cuts in order to offset decreased demand. US oil fell 20% from last Friday, even after a 5% rally at the end of trading Friday as Trump announced US oil purchases for strategic reserves.
The 10-Year Treasury yield hit an all-time low 0f 0.32% but jumped later in the week as investors bought back into stocks on Friday. The 30-Year Treasury yield also hit a new low, dipping below 1% for the first time.