Volatility influenced the market last week and investors were prepared for yet another volatile week. The trading swings have become more significant in a way that has not seen since the 2008 financial crisis. Last week, the stock market in the US saw the greatest weekly gains since 1938, giving investors some much needed respite.
Among the big headlines this week was the gain of Tesla ($TSLA) stock as a result of its higher-than-expected deliveries. The Dow Jones futures, Nasdaq futures and S&P 500 futures also managed to make up for their losses on Friday. All this, the total number of COVID-19 cases has exceeded 1 million and 6.6 million Americans filed new claims for unemployment benefits, bringing the two-week total to 10 million.
End of March to Start of April Market Recap
On Monday, March 30th, the S&P 500 closed at 2626.65. The Dow Jones Industrial Average (DJI closed at 21,413.44 while the Nasdaq closed at 7,774.15. The US stock market had a constructive session and kept building on the past week’s rally. Investors continue to be shaken by the spread of coronavirus across the US and the measures to deal with the pandemic.
On the 31st, the S&P 500 dropped to 2584.59 while the Dow Jones closed at 21,917.16. The Nasdaq had a close at 7,700.10. As the first quarter reached its last day, the market fell. To put this in perspective, it was the worst performance on record for the month and the lowest outcome for a quarter since 1987. This was also fueled by the rising number of covid-19 coronavirus cases that day particularly in the New York metro area. While the energy sector was helped by the slight oil price improvement, 10 sectors out of 11 ended lower for the day.
On the 1st of April, the S&P 500 dropped further to 2470.50. Nasdaq had a close at 7,360.58 while Dow Jones closed the day at 20,943.51. The day again began with sobering news about COVID-19. President Trump sent a warning that the US could be heading for a tough two weeks as the pandemic spreads. There were even estimates that deaths due to the virus could be in the region of 100,000 to 240,000 before the virus completes its course. This news caused the market to go into a pullback situation.
The S&P 500 ended Thursday at 2526.90 while the Nasdaq Composite closed at 7,487.31. The Dow Jones closed at 21,413.44. It was a volatile situation this week, with gains on Monday and setbacks the next two days. On Thursday though, the market experienced an upside again. The reason is thought to be bargain hunting. Oil prices experienced a 10% recovery on indications that the price war between Saudi Arabia and Russia is cooling down.
The Dow Jones Industrial Average had a 3% fall, amounting to 584 points, and closed the week at 21,333.40, while the Nasdaq Composite closed at 7,480.07. The S&P 500 closed at 2,533.69. Stocks were lower after payrolls data from March came below expectations. The report revealed a loss of 701,000 jobs in March. Disney ($DIS) announced plans to start laying off workers in the latter part of the month.
Dow closed up 1,627.46 points or 7.73%, at 22,679.99, posting its third biggest point gain ever. S&P 500 closed up 175.03 points, or 7.03%, at 2,663.68, for its best day since Mar 24th when the S&P gained 9.38%.
Stocks rose higher beginning the holiday-shortened week as some positive headlines eased investor worries after last week’s dismal job loss numbers. The gain of Tesla ($TSLA) stock and a 19% surge in Boeing and a 15% jump in Raytheon Technologies helped with the markets rise. Overall, the markets will continue to be volatile as the rapidly spreading coronavirus continues to produce a global health and economic crisis.
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