U.S. stocks tumble 11% in worst week since the financial crisis, TSX flirts with correction territory
The spread of the coronavirus rattled global financial markets, sending U.S. stocks to their worst week since the financial crisis more than a decade ago. Demand spiked for safe assets from Treasuries to the yen.
The S&P 500 plunged 11 per cent in the five days and the Dow Jones Industrial Average careened to the lowest since June, wiping out almost US$3 trillion in value from American equities. Treausires surged, pushing yields on the 10- and 30-year notes to record lows during the period. Oil plunged toward US$45 a barrel in its biggest weekly rout since 2008.
“Investors are selling stocks first and asking questions later,” Keith Lerner, SunTrust’s chief market strategist, wrote in a note. “We are seeing signs of pure liquidation. ‘Get me out at any cost’ seems to be the prevailing mood. There is little doubt the coronavirus will continue to weigh on the global economy, and