Dow Dips, in Preparation for Worst Quarter Ever

Dow Dips, in Preparation for Worst Quarter Ever

It was also the S&P's biggest first-quarter decline on record as consumers were advised to stay at home, leading businesses to announce temporary closures and massive staff furloughs.

U.S. stock index futures rose on Tuesday at the end of one of Wall Street's worst first quarters on record, as an unexpected expansion in Chinese factory activity raised hopes of a more stable economic recovery from the coronavirus pandemic.

Stocks in Japan fell nearly 4%, while Hong Kong shares also dropped. Meanwhile, Australia's ASX 200 gained 3.6%.

The Nasdaq Composite dropped 34.09 points, or 0.44%, to 7,740.06 at the opening bell. A bond's yield drops when its price rises, and investors buy long-term Treasurys when they're fearful because they see US government bonds as having virtually no risk of default.

Asian shares surged Tuesday after a rally in USA stocks, mostly spurred by health care companies' announcements of developments that could aid in the coronavirus outbreak.

"There are more worries now about this rippling through dividend payments and cutting back on the income investors are getting", said Jeffrey Kleintop, chief global investment strategist at Charles Schwab.

One important data point will be Friday's US employment report for March.

Goldman Sachs economists said today they expect the U.S. economy to shrink 34 per cent in the second quarter, but they expect growth to rebound in the third quarter.

Abbott Laboratories climbed by 6.41 percent after winning US approval for a diagnostic test for COVID-19.

"In the USA, we're at the beginning of a downturn", said Steven Englander, global head of G-10 foreign-exchange research and North America macro strategy at Standard Chartered Bank. Upcoming data is likely to confirm damage to the economy, but how much has been priced in by the market remained to be seen. "For that to happen, we need a lot of good luck and serious implementation of economic and health-care policy".

Trump also proposed another $2trn stimulus package, this time focused on infrastructure spending.

"In the upcoming earnings season, most corporate managements will have nothing to offer but uncertainty about how bad their results will be over the rest of the year,"After accentuating the positives in the war against the virus last week and rotating out of bonds and into cheap stocks, investors are hunkering down in the trenches again". The two lenders, which also have United Kingdom listings, were among four banks that said Tuesday they would cancel unpaid 2019 dividends at the Bank of England's request. The S&P 500 was down about 70 points and the Nasdaq shed almost 170.

The losses come after the Dow Jones industrial average capped of its worst-ever first-quarter performance on Monday, slipping 23% over the three-month period.

Meanwhile, Cleveland Federal Reserve Bank President Loretta Mester said US economic activity was likely to be "very bad" in the first half of 2020 and the unemployment rate could rise above 10%.

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