- US stocks slipped Tuesday as investors weighed a longer-than-expected recovery from the escalating coronavirus outbreak.
- The losses came as major banks revised their second-quarter GDP projections lower, citing a record jump in unemployment claims and severe financial tightening.
- The Dow Jones industrial average is on track for its worst first quarter in history, while the S&P 500 is poised to end the first quarter with its worst return since the financial crisis.
- Global confirmed COVID-19 cases passed 800,000 Tuesday while the death toll climbed above 38,700. The US death count passed 3,000 after 500 people died in the last 24 hours.
- Watch major indices update live here.
US stocks dipped Tuesday as traders weighed a longer-than-expected recovery from the escalating coronavirus outbreak.
The losses come as numerous economists across Wall Street further revise their quarterly gross domestic product estimates lower amid the spreading pandemic. Goldman Sachs sees the economy shrinking by 34% next quarter, eclipsing its previous 24% projection.
Goldman added Tuesday that “sky-high” jobless claims hint at a “bigger output and (especially) labor market collapse than we had anticipated.” JPMorgan lowered its estimate to a 25% GDP contraction on Thursday as the outbreak continues to tighten financial conditions across the country.
Here’s where the major US indexes stood shortly after the market open at 9:30 a.m. ET Tuesday:
- S&P 500: 2,605.74, down 0.8%
- Dow Jones industrial average: 22,152.39, down 0.8% (175 points)
- Nasdaq composite: 7,738.52, down 0.5%
Major US indexes are set to end the quarter having logged worst performance since the financial crisis. The Dow specifically is on pace for its biggest first-quarter decline on record, dragged lower by struggling giants Boeing and ExxonMobil.
Oil gained Tuesday morning closing the prior day at 18-year lows. Brent crude, oil’s international benchmark, has seen unprecedented price pressure from coronavirus’s hit to global demand. A price war between Saudi Arabia and Russia has further dragged prices lower as the two giants flood the market with unwanted inventory.
Coronavirus’s total infection count passed 800,000 on Tuesday as the global death toll passed 38,700. The US death toll climbed above 3,000 on Tuesday after 500 people died over the past 24 hours.
Monday’s session marked the fourth gain for US equities in five trading days. The Dow closed nearly 700 points higher as investors weighed new measures to curb coronavirus contagion and discover a vaccine. Abbott Laboratories soared as much as 13% after receiving FDA approval for its quick COVID-19 test.
Investors also cheered signs that the White House would avoid prematurely opening the economy from its frozen state. President Trump announced Sunday that federal social-distancing mandates would be extended through April, reversing his previous call to resume regular economic activity by Easter.
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