Week In Review: Stocks Erase Gains For Month & Year

Almost on cue, the market continued to pullback as fear is beginning to spread regarding how the coronavirus will impact the global economy. This is almost like a scene from a bad movie, the outbreak happened during the Chinese New Year week-long holiday so their markets were closed all week and they stayed closed an extra few days due to the deadly outbreak. I hope this gets resolved soon for everyone’s safety. I was flying up and down the East Coast last week and the thought of everyone having to walk around with masks on is not fun. Fingers are crossed, someone, somewhere can find a cure and this can go away because losing lives is “not fun” The market was VERY extended to the upside and it continues to pullback as it pauses to digest the recent and robust rally. The key now is to analyze this pullback to see if it is another normal “healthy” pullback or something worse. 

Monday-Wednesday’s Action:

Stocks fell hard on Monday after the deadly coronavirus spread over the weekend and another case showed up in the United States. Oil prices, and slew of other areas of the market, plunged as fear spread that the coronavirus will hurt the global economy. Stocks rebounded on Tuesday as the market bounced from oversold levels. After Tuesday’s close, Apple reported earnings and the stock was up 2% on Wednesday. Stocks closed mixed on Wednesday as several large airlines stopped flying to China and investors digested the latest round of earnings. After Wednesday’s close, Facebook fell over 6% after the social media giant reported earnings.

Thursday & Friday Action:

Stocks were quiet on Thursday after the World Health Organization (WHO) basically issued a global state of emergency regarding the coronavirus. The big selling showed up on Friday which was the last trading day of the month. Stocks fell over 500 points as fear spread that the ramifications from the virus could adversely impact the global economy. 

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