A week for the record books

Mar 04, 2020 | Jay Zhang


The correction that seemed to hit stocks at warp speed has investors once again looking to central banks to savethe day. But as markets increasingly expect a flurry of further Fed rate cuts, already low Treasury yields are only moving to new record


What a difference a week makes. Since the S&P 500 peaked at3,386 on Feb. 19, it has fallen by approximately 12 percent overthe past seven trading sessions as the spread of the coronaviruspicked up outside of China. While 10 percent-type correctionsare a normal occurrence across any economic cycle, 10 percentcorrections over the course of barely a week are less so. In thesome 10,000 trading days since 1980, there have only been 14such week-long periods of losses exceeding 12 percent.


Market pulse
4 Some perspective on the U.S.’s coronavirus correction
4 Coronavirus’s effect on Canadian financial markets
5 Big European companies quantify the coronavirus impact
5 Coronavirus in China: Where things stand​​​​​​​


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