Dow Jones falls to 2.86% on Wall Street and the 10-year bond yield drops to its lows

The Dow Jones of Industriales, the main indicator of Wall Street, opened the session this Friday with a fall of 2.86% due to fear of the coronavirus in the markets, which this morning have lowered the yield of the Treasury bond to 10 years to a new record low below 0.7%.

Half an hour after the start of the day at the New York Stock Exchange, the Dow cut 748.05 points, standing at 25,373.23, with its 30 listed in red and weighted especially by Exxon Mobil (-5.55%) and American Express (-5.24%).

The selective S&P 500 fell 3.06% or 92.43 points, up to 2,931.51, and the Nasdaq market composite index, which brings together major technology companies, lost 2.86% or 249.69 integers, up to 8,488, 91.

The New York parquet seems aimed at firing a volatile week with notable swings in the Dow Jones: on Monday it had a record rise of 1,290 points; on Tuesday he lost 786; on Wednesday he won 1,173 and yesterday Thursday he lost 970 points.

The Vix index, known as the indicator of fear in the market, rose today by 21% and so far this year has shot up almost 250%.

This Friday it has transpired that there are already 100,000 cases of coronavirus registered worldwide, which has overshadowed a couple of new positive economic data, prior to the outbreak: unemployment in the US. It fell to 3.5% in February, at lows not seen in half a century, and the trade deficit fell 6.7% in January.

Wall Street is still betting on selling shares and resorting to safer values ​​such as public debt, where the yield of the 10-year bond at 0.692% has fallen this morning, although now it rose to 0.723%, and gold, whose price at this hour rose about 1%, to $ 1,683.60 an ounce.

The main White House economic advisor, Larry Kudlow, said this morning on the CNBC channel that he did not want to “downplay” the epidemic, but asked “not to overreact” and said that “in many ways, the US should continue going to work”.

By sectors, the greatest losses were for energy (-4.72%), financial (-3.73%) and public service companies (-3.59%).

In other markets, Texas oil plummeted at around 7% at this time, priced below $ 43 a barrel, between versions that Russia would have rejected an eventual cut in the supply of crude by the Organization of Petroleum Exporting Countries (OPEC) due to the impact of the coronavirus.


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