Stocks slumped, while Treasuries surged as bleak retail, manufacturing and homebuilding data from the world’s largest economy added to concern over a severe global recession.
The S&P 500 Index sank from a one-month high, with all of its major groups dropping. Financial shares slid as Goldman Sachs Group Inc.’s investment portfolio took a hit from the coronavirus pandemic, while Bank of America Corp. and Citigroup Inc. followed rivals in setting aside billions for loan losses. Oil plunged to the lowest in two decades amid a record collapse in U.S. fuel demand. Treasuries surged with the dollar.
Both earnings and economic data highlight the brutal impact of the economic stoppage designed to combat the virus outbreak. U.S. retail sales and factory output posted historic declines in March, and surveys in April looked even worse. Manufacturing in New York state and sentiment among American homebuilders plunged by previously unthinkable amounts.