U.S. stocks dropped to cap the worst week for equities since the global financial crisis amid dire warnings about the economic effects of the coronavirus pandemic and as governments stepped up efforts to keep people at home.
The S&P 500 Index tumbled to its lowest in three years, ending the week down 15 per cent as the European Union said the recession this year may be as bad as 2009, and Goldman Sachs warned the U.S. economy may shrink 24 per cent on an annualized basis in the second quarter. Oil sank as governments around the world imposed restrictions on movement to slow the disease’s spread, bringing its weekly decline to 29 per cent.
The 10-year Treasury yield fell back below 1 per cent. The dollar was little changed after vaulting more than 8 per cent in the previous eight sessions as the Federal Reserve coordinated action with global central