Wall Street closed lower on Friday as investors rushed to take out their investments before the weekend. The number of COVID-19 cases in the US has surpassed the other nations. And this has taken a massive toll on the economy as well as its financial markets.
- The US Department of Labour posted that the unemployment rate now stands at a three year high of 4.4%.
- More than 700,000 have lost their jobs in March alone.
- The total number of unemployed population now stands well past 6.6 million.
Snapshot of how the US Stock Indices ended the week
- The Dow Jones Industrial Average ended 1.69% lower. With a decrease of 360.91 points, it now stands at 21,052.53 points.
- The S&P 500 Index (SPX) slid 1.51% and ended the week at 2,488.65.
- NASDAQ Composite Index lost 114.23 points and finished at 7,373.08. It is 1.53% down from its previous day’s close.
Here’s how the top 5 contributing sectors of the SPX performed last week
- Energy gained 5.4%.
- Information Technology lost 2%
- Financial Services ends at 6.8% lower than its previous close.
- Consumer Discretionary has lost 4.7%.
- The ‘Materials’ sector is down by 3.8%.
Investors are ditching riskier assets and are rushing towards safer havens. Gold, Government Bonds, and Treasury bills are gaining much attention. However, there is optimism among several investors and analysts who believe that this phase would soon pass. Recovery would take time, but those who hold on to their assets and possibly invest in SIPs in Mutual funds would stand to gain in the longer run.
The US Federal Reserve is resorting to unconventional Quantitative Easing measures to stall the falling economy. US President, Donald Trump has recently increased the duration of the nationwide lockdown to April 30. It is a step in the direction of combat against the Coronavirus pandemic. The US Government is also trying its best to reassure citizens that jobs would come back soon.
