The stock market fell so fast on Monday that trading on the New York Stock Exchange was halted for the first time since 1997.
It was the worst day for the stock market since 2008.
The oil market is also in free-fall, as the price of the commodity fell as much as 25%, the worst sell off since 1991.
It did not take long for the market to recover however, as the Dow Jones posted a 1,167-point gain on Tuesday, halving losses from Monday’s sell-off. We are seeing unprecedented levels of volatility as the country and the world come to grips with a potential sustained coronavirus outbreak.
- A Pause On Payroll Tax?: President Trump met with lawmakers on Tuesday to discuss a possible tax relief measure to combat a potential economic downturn caused by the coronavirus. Trump pitched a 0% payroll tax rate that would run through the end of the year. Potential tax incentives would come on top of a $8.3 billion spending package the President signed in February.
- Municipal Bond Prices Surge: The coronavirus is driving investors into safer assets, and municipal bonds are proving to be a popular route for investors seeking a safe-haven. A recent rise in municipal-bond prices have driven yields to nearly a 40-year low on Friday, according to Refinitiv.
- Airline Industry In Turmoil: Few industries have been hit harder by the coronavirus outbreak than the airline industry. On Tuesday, United Airlines reported a 70% drop in domestic demand in the last few days. Delta has said it is reducing its international flights by as much as 25% and domestic capacity between 10% and 15%, and nearly every major airline is expected to follow suit.
- Stitch Fix Gets Ripped In Half: The direct-to-consumer personal styling service lost nearly half of its value on Monday after reporting a second quarter sales miss of just $730,000. Stitch Fix blamed “heightened promotional activity across retail” during the holidays. The company issued a weak guidance outlook for the rest of the year sending shares plummeting.
- FANG Gets Rocked: Facebook, Amazon, Netflix and Alphabet (Google) collectively saw nearly $150 billion of market cap vanish on Monday. All four of the companies have asked their employees to work from home if they are in an affected area.
- Exxon Mobil Hits Historic Low: Shares of the energy giant fell the most in 11 years on Monday, falling over 12%. A possible price war between OPEC and Russia is weighing on the oil industry after both parties failed to reach a deal in Vienna on Friday. Exxon is now valued at its lowest level since 1999, when it took over Mobil Corp.
- Investors Turn To Gold Amid Uncertainty: Gold prices surpassed the $1,700 mark on Monday, the highest level in 7 years. Several analysts believe the precious metal could reach the $2,000 mark as investors seek to diversify amid extreme volatility.
- Aytu Bioscience Skyrocketing: Shares of thinly traded penny stock Aytu Bioscience gained nearly 500% on Tuesday, after the company announced a licensing agreement with L.B. Resources Limited for the exclusive distribution of a point-of-care rapid test for COVID-19 antibodies in the U.S. for three years. The company says it plans to discuss a regulatory pathway with the FDA and near-term availability under Emergency Use Authorization.
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