Stocks fell after volatile trading on Wednesday as investors debated whether the spread of the coronavirus may be slowing in U.S. and Europe. Oil tumbled down also, and bonds retreated.
U.S. futures rallied on Monday due to the hopes of the pandemic retreating. However, the S&P 500 Index declined by 0.2% after surging as much as 3.5% over the week. The benchmark briefly climbed by 20% from its March 23 low, entering a bull market. But its advance didn’t last long.
The Stoxx Europe 600 Index, on the other hand, soared after the rate of new infections slowed in France, as well as in Italy, the original epicenter of the continent’s outbreak.
Asian stocks rallied meanwhile. The MSCI Asia Pacific Index increased by more than 2% after gaining nearly 3% a day earlier. Chinese stocks skyrocketed, as the country stated that it didn’t have any new deaths for the first time since the pandemic started.
Shanghai reopened after a long weekend, and policymakers launched further stimulus, causing the yuan to strengthen.
What do the experts say?
Chris Gaffney, president of world markets at TIAA, stated that the stocks would probably stay very volatile, and this roller coaster continues. He expects to see futures bottom out again.
New York’s rate of new coronavirus infections slowed for a third straight day. Investors hope that the pandemic may finally be approaching a peak in the state where it has caused the most damage.
Matt Maley, the equity strategist at Miller Tabak & Co, also noted that it doesn’t take much for the buyers to pull-in their horns with the volatility being so wild lately. According to him, stock buyers got a little nervous when oil rolled over.
Oil collapsed to the lowest level since the start of the month. Investors speculated whether the world’s biggest producers would be able to strike a deal that cuts enough output to offset a colossal demand loss from the coronavirus outbreak, causing the fall in the oil price.