US indices report worst week of performance since GFC
US stockmarkets entered into correction territory on Thursday, having now fallen more than 10% from their record closes earlier this month, and reporting the worst week of performance since the Global Financial Crisis in 2008.
The Dow Jones suffered particularly badly with its biggest one-day points loss in its history at 1,200 points.
For the tech-heavy NASDAQ index, the 4.6% loss was the largest in eight years.
All three major indices, Dow Jones, NASDAQ and S&P 500, fell by more than 4.4% during the day.
The fall was triggered by fears the coronavirus was evolving into a global pandemic combined with a deterioration in market sentiment. There were widespread concerns in markets about the impact the coronavirus, which has killed around 2,000 people, would have on sectors such as tourism and aviation.
US President Trump held a press conference on Wednesday night and announced he had appointed Vice President Mike Pence to lead the US’ coronavirus response. Some 33 people in California tested positive for coronavirus and it was monitoring a further 8,400 for the disease.
US health secretary Alex Azar announced his priorities included better disease surveillance, local government response co-ordination, development of therapeutics and increased manufacturing of protective equipment of masks.
In Australia, the ASX 200 was relatively unscathed in comparison to its US counterparts, falling less than 1%.
AUTHOR
Laura Dew
Recommended for you
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
Responsible investment performance concerns have lessened as the market hits $1.6 trillion in AUM, according to RIAA’s annual report, but greenwashing fears among asset managers are on the rise.
