Coronavirus drags down Wall St.; Fed rate-cut hope pares some of earlier losses

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Coronavirus drags down Wall St.; Fed rate-cut hope pares some of earlier losses

On Friday, the 6th of March 2020, a number of US stocks fell broadly across the board over intensifying frets of financial fallouts of a clattering wave of coronavirus outbreak, nonetheless, in late-afternoon trading, all three major indices of Wall St.

pared some of their earlier losses and winded down the week with modest gains. Besides, according to Wall St. analytics firm S&P Dow Jones Indices, the benchmark Standard & Poor 500 accountable for roughly 44 per cent of entire trading volume, had reported its tenth decline in past 12 sessions as a raft of measures adopted by the Trump Administration to contain the virus outbreak had crippled supply chain and plagued hopes of a sharp rise in economic growth in 2020, while the index alone had wiped out nearly 12 per cent or $3.34 trillion from its market cap since its record closing high on February 19th.

Nonetheless, following a volatile week that had witnessed newer US coronavirus cases rising to 233 people with 14 deaths in the US state of Washington, all three key indices of Wall indices reported a modest weekly gain after US Fed had hinted possibilities of another rate-cut by 25bps as early by the March FOMC minutes scheduled to take place on March 17th-18th.

Meanwhile, referring to a likely rout of the economic activities over the coming days due to a slew of measures adopted by the US health officials to contain the coronavirus outbreak, a co-chief investment strategist at John Hancock Investment Management in Boston, Emily Roland said on Friday’s (March 6th) market closure, “The decline today is all about the efforts to contain the spread of the virus.

The measures being taken could dampen commerce and consumer activity, and markets are responding to that. ” Quoting statistics, on Friday’s (March 6th) Wall St. closure, Dow fell by 0.98 per cent to 25,864.78, S&P 500 shrugged off 1.71 per cent to 2,972.37, while the Nasdaq composite was nudged 1.87 per cent to 8,575.62.