BREAKING NEWS: Stocks Plunges 1,465 Sending Markets In Bear Market Territory
Here we go again with the volatile financial markets.
- After the Dow soared 1,100 points yesterday, Stocks Plunges 1,465 points today sending markets in bear market territory
- All other equities markets followed the Dow Jones Industrial Average and closed lower
- The markets tanked today on news WHO declaring a global pandemic on the coronavirus outbreak
- President Trump and his administration are working on a stimulus package to avoid an economic meltdown and a recession
- Many impatient investors are standing in the sidelines as they await what stimulus package the Trump Administration will propose
- Mortgage rates hit an all-time record low
- However, lenders are increasing rates versus dropping rates due to the enormous volume of mortgage loan applications
- Some lenders have completely shut down accepting new mortgage applications
- Other lenders are spiking mortgage rates because of the overload of mortgage applications
- Many mortgage companies do not have the manpower to process new mortgage loan applications
- Therefore, they are spiking mortgage rates higher instead of lowering them
In this article, we will discuss and cover Stocks Plunges 1,464 Points Sending Markets In Bear Market Territory.
Stocks Plunges After Yesterday’s Spike Due To Fears Of The Coronavirus Outbreak
The Dow Jones plummeted 1,465 points or 5% lower on Wednesdays as investors stood on the sidelines awaiting news of the stimulus package by the Trump Administration in response to the coronavirus outbreak and uncertainty.
Fear in Wall Street spread after the World Health Organization (WHO) has officially declared the coronavirus outbreak as a pandemic. The equities markets have never been this volatile. The markets do not like uncertainty. There is no timeframe as to how long the coronavirus outbreak will last. To this date, we do not have a cure nor a vaccine for this contagious deadly virus. The stock market sell-off of 10% or more sent stocks in market correction territory. A bear market is when the market is down 20% from its recent highs
Today’s stocks plunge officially put the markets in a bear market territory, sending more fears to Wall Street and U.S. consumers. Stocks going into bear market territory markets the official end of the longest bull-market expansion in the history of the United States.
What Experts Say About Today’s Stocks Plunges And The Economy
Michael Gracz of Gustan Cho Associates has been closely monitoring the equities and mortgage markets since the coronavirus outbreak. This is what Mike Gracz said:
Economic-relief measures were expected to be announced Tuesday, but apart from reports of a payroll-tax cut through November, investors are in the dark about when the stimulus could arrive and what it would look like. The decline wiped out most gains made in Tuesday’s rebound and continued the trend of heightened market volatility amid the coronavirus outbreak and the new oil price war. All three major indexes tanked roughly 5%, erasing gains made during Tuesday’s rebound. The drop ushered in another day of heightened volatility from coronavirus risks and the escalating oil-market war between Russia and Saudi Arabia. Losses extended in afternoon trading after the World Health Organization declared the coronavirus outbreak a pandemic.
Other Financial Markets Plummet Today Due To Coronavirus Pandemic
After today’s Dow stock market sell-off of 1,465 points or down 5.9%, the market entered bear market territory due to a more than 20% drop from its February 19th, 2020 highs. The Dow is now at 23,553.53. This officially ended the equity market’s longest expansion run. The S&P slipped 2,741 or 4.9%. The Nasdaq slid 4.7% and is now at 7,952.05.
Dale Elenteny of Gustan Cho Associates said the following about today’s market rollercoaster:
Investors initially expected stimulus details to be announced Tuesday. Markets surged through the previous session amid reports that President Donald Trump wanted to cut payroll taxes through the November election. The fiscal stimulus would join the Federal Reserve’s early-March monetary-policy boost. The White House said on Monday that it was crafting a plan to bolster the U.S. economy amid the coronavirus outbreak, but details remain scarce after the third trading session since the announcement.
Mortgage Rates Versus Lenders Spiking Rates
The housing and mortgage markets still remain strong for this year. However, lenders are increasing rates when mortgage rates are at record lows due to capacity. Most lenders are at full capacity in volume due to the surge in mortgage loan applications. Many lenders have shut down new loan applications while other lenders have jacked up mortgage rates because of the shortage of personnel. This is not just confusing mortgage borrowers but loan officers as well. Mortgage rates last week were at 3.25% but today has been jacked up to 4.5%. Refinance borrowers who have not locked their mortgage rates last week may need to wait until rates stabilize and fall. There is a 10% decrease in homebuyers shopping for homes due to the coronavirus outbreak and the uncertainty of this deadly virus. In the meantime, the Trump Administration is working around the clock in coming up with a stimulus package to stabilize the marketplace and have the country avoid a recession.