U.S. markets headed sharply lower as the coronavirus trumped stellar nonfarm payrolls for February. Analysts are now saying the market is fully pricing in a recession due to the coronavirus.
Heading into the final hour of trading on Wall Street the Dow Industrials is 2.71% lower, while the S&P 500 has a 3.42% loss, and the Nasdaq is off by 3.73%. If these levels hold through the close the Dow will hold onto a 0.4% weekly gain, while the S&P 500 is looking at a weekly drop of 0.8%, and the Nasdaq would post a weekly loss of 1.5%.
Stocks opened sharply lower on Friday but rebounded off their lows in response to the far stronger than expected monthly nonfarm payrolls report. Economists had been expecting the U.S. to add 175,000 jobs in February, but the data showed the U.S. economy adding a stunning 273,000 jobs in February, with the unemployment rate dropping back to a historically low 3.5%.
Even that was unable to pull the market into positive territory however, as investors fear a recession is looming due to the impact of the coronavirus on global economies.
The drop puts major U.S. indices back into correction territory, defined by a drop of 10% or more from the most recent highs. Markets have bounced in and out of correction territory all week as volatility is at extremely high levels.
Elsewhere crude oil was down 10% after OPEC failed to reach an agreement on production cuts, and the 10-year Treasury yield fell to a new record low beneath 0.7% as investors look for safe havens.
Learn how to trade the US Market and more in our FX Academy.