Alex Carlucci The Mortgage Expert,
Publish On: March 10, 2020
Stocks Skyrockets On Stimulus News by President Trump to institute a payroll tax cut until the end of the year.
- The coronavirus outbreak has taken a toll on the financial markets
- Yesterday, the Dow Jones Industrial Average tanked over 2,000 points, the largest single-day drop since the 2008 financial crisis
- The financial markets are volatile due to the uncertainty of the coronavirus
- Wall Street does not like uncertainty
- Add fear to the uncertainty, the net result is a financial market shakeup
- The coronavirus was first discovered in December 2019 in Wuhan China
- The Trump Administration is doing everything possible to avoid a recession by instituting stimulus programs to keep the economy rolling
- Fundamentally, the economy is strong with the lowest unemployment numbers in 50 years
- February jobs report numbers came in at 273,000
- The 2020 coronavirus market meltdown has sent mortgage rates to near low levels
- With mortgage rates near record lows, the 2020 housing market forecast can have a historic record year
- However, with potential homebuyers nervous about their jobs being secure, it may affect the housing market this year as well as going into 2021
- The Dow slid over 3,500 points two weeks ago due to the coronavirus outbreak or 13%
- The stock market sell-off triggered the financial markets into correction territory
- The Fed had a 50 basis point emergency interest rate cut last week to avoid a recession and a downfall of the markets
- Economists expect another several interest rate cuts in the coming weeks and months
In this ARTICLE, we will discuss and cover Stocks Skyrockets On Stimulus News After Yesterday 2,100 Point Drop.
Data From Stocks Skyrockets On Stimulus News Today
The S&P had the best day in more than two years. The Dow Jones finished the day up 1,167 points. This was a gain of 4.9% for the Dow Jones Industrial Average. All other financial markets followed and all closed higher. The trading day was extremely volatile. The Dow opened higher. Minutes after stocks opened, the Dow surged more than 800 points. The S&P rocked 4.9% higher at the close.
Michael Gracz of Gustan Cho Associates who has been observing the markets today said the following:
It was another turbulent day on Wall Street as stocks swung wildly from sharp gains to the negative territory before closing higher at the end of the day. The Dow fluctuated more than 1,300 points between its lowest and highest levels before closing near the session’s high. Tuesday’s gains followed Monday’s heavy selloff, the markets’ worst day since 2008.
What will the financial markets be like tomorrow? We shall see.
How The Economic Volatility Affect The Housing And Mortgage Markets
The extremely volatile stock markets sent U.S. Treasuries substantially lower. The yield on the 10-year U.S. Treasury is below 1.0%. Yesterday, the yield fell below 0.50% creating a major panic. With yields so low on the 10-year Treasury, mortgage rates have fallen near historic record lows. 30-year fixed-rate mortgages for prime borrowers are nearing 3.0%. 15 year fixed rate mortgages for prime borrowers are now below 3.0%. Prime borrowers are mortgage applicants with over 740 FICO with 20% or more down payment and/or loan to value. Mortgage loan applications have been increasing in record numbers that some lenders are not dropping rates because they cannot be taking on more applications. This is due to a shortage of manpower. Home purchase mortgage applications recorded a decrease due to the uncertainty of the coronavirus and its impact on the economy. The Trump Administration is doing everything possible to keep the economy going and avoid a recession. President Trump putting a major priority in creating stimulus programs will most definitely keep the 2020 housing market forecast strong. Gustan Cho Associates will keep our viewers updated on developments on this story in the days and weeks to come.
