July 10, 2020
In what was described as a “relatively quiet session, but a roller coaster nevertheless,” the Dow and S&P 500 had a rough day yesterday. On the session, the Dow dropped 361.19 points, or 1.39%, and the S&P 500 lost 17.89 points, or -0.56%. The NASDAQ, which has proved to be far more resilient in volatile markets, gained 55.25 points, or +0.53%.
Once again, the resurgence of the coronavirus has investors on edge regarding its potential negative effects on the recovering U.S. economy. “The path for the economy will likely hinge on the amount of financial scarring that occurs in the months ahead and degree Bruce Bittles, chief investment strategist at Baird. “High levels of initial jobless claims and evidence that small businesses are closing are sobering reminders of the economic challenges that lie ahead.”
Dow futures this morning continue to reflect the market volatility caused by the virus, being as much as down 200 points before fully recovering into the positive at about 6am PDT. The recovery in Dow futures came after Gilead Sciences reported their virus drug, remdesivir, showed a sharp mortality risk drop when used to treat patients infected with the virus.
The bond market appears to be the beneficiary today as some investors are seeking shelter from the recent volatility in government bonds.