Elite Capital International: A whopping $6T in wealth got erased last week over COVID19 outbreak

Stocks dive deep last week as it enters correction, possible reason surfaced is due to the fear related to the coronavirus spread over 55 countries worldwide infecting a total 89,198 people and with a total death of 3,048 as of this moment.

The outbreak did not just affected peoples health it also inflicted damage on global economy. Never have thought S&P 500 would suffer its worst week ever after its financial crisis happened last October of 2008.

According to S&P Dow Jones Indices the declined erased a whopping $6 trillion market value in just a week.
S&P Dow Jones Indices Senior Index Analyst, Howard Silverblatt wrote in an email to CNBC said, “The current, and largest concern now is if consumers start pulling back on their spending – consumer spending has been supporting the economy, as it makes up for disappointing corporate expenditures.”

The decline on the stock market was fired up mostly by the concerns of investors who thinks that the coronavirus outbreak may hinder economic growth and may also cut down corporate profits.

Two more stock are down by 10% from their recent highs, The Dow Jones industrial average and Nasdaq Composite index. The Dow alone lost over 3,000 points last week. But recovered the following week. In a latest news, Dow just jump up by 1,290 points or 5% in its biggest point rebound in history.

Following this week’s market news, most stocks are recovering bit by bit.

Managing Director at Bannockburn Global Forex, Marc Chandler said in an interview last Sunday, “Under other conditions, the economic data in the week ahead would set the tone, but in the current environment, they play second fiddle to market positioning and anxiety around the Covid-19.”

He added, “Investors may be particularly sensitive to downward revisions as it may reflect the deterioration of conditions as new data was reported.”

Here were the main moves in markets, as of 4:00 p.m. ET:
• S&P 500: +4.61% or +136.30 points to 3,090.52
• Dow: +5.10% or +1,296.81 points to 26,706.17
• Nasdaq: +4.49% or +384.80 points to 8,952.17
• Crude oil: +5.56% or +2.49 to 47.25 a barrel
• Gold: +1.29% or +20.20 to 1,586.90 per ounce
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