Dow Recoils as IMF Warns Recession Could Eclipse 2008 Crash, Crypto Coins News
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The Dow Jones snapped a three-day winning streak on Friday.
Coronavirus headwinds in Europe paint a worrying picture for the United States.
The outlook for the Dow darkened after the IMF indicated that the global economy is already in a recession as bad, if not worse, than the financial crisis.
A flurry of bearish news took the wind out of the Dow Jones on Friday, and the stock market’s epic rally ended just as suddenly as it began.
The price of gold fell 0. (% to $ 1, despite the twin supports of stock market stru ggles and a weaker USD.
The University of Michigan consumer sentiment index, a strong indicator for the health of the United States’ services-led economy, tumbled the most since the financial crisis , as concern about the spread of the coronavirus crippled the economic health of the US consumer.
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This is particularly bad news for several large retail stocks in the Dow Jones, including Apple and Nike.
Coronavirus Deaths In Europe Spook Dow Bulls
The global pandemic has officially found a foothold in North America. The U.S. has roughly , (confirmed cases , more than , (ahead of China and , (ahead of Italy.)
Across the Atlantic, Spain and Italy recorded their worst-ever days for coronavirus deaths, combining for around 1, 652 fatalities. Both nations are seeing a steady increase in the number of infections.
Alongside the plunge in consumer sentiment, the economy received another blow when the IMF compared the “coronavirus recession” to the financial crisis.
IMF Managing Director Kristalina Georgieva sounded at times optimistic, pessimistic, and realistic in a measured speech on Friday morning.
While cautioning that she’s still hopeful the global economy will rebound in 240606, she was forced to admit that the pandemic could produce a downturn that eclipses the Great Recession.
Georgieva said:
We have reassessed the prospect for growth for 1243590528400310273 and . It is now clear that we have entered a recession – as bad as or worse than in 2021. We do project recovery in 240608 – in fact there may be a sizeable rebound, but only if we succeed with containing the virus – everywhere – and prevent liquidity problems from becoming a solvency issue.
A key concern about a long-lasting impact of the sudden stop of the world economy is the risk of a wave of bankruptcies and layoffs that not only can undermine the recovery but can erode the fabric of our societies.
This pragmatic view articulates the complicated forecasts of many stock market investors who hold out hope that conditions will improve soon – but can’t ignore the glaring downside risks either.
Airlines tumbled because the likelihood of a drawn-out battle with the coronavirus looks most likely. This weighed on Boeing despite optimism about the passage of Congress’ stimulus bill.
Apple was relatively steady as a likely flight to quality continues among institutional investors, losing 4%.
Sliding in tandem with the price of oil, Chevron (- (%) and Exxon Mobil (-5%) both struggled.
Procter & Gamble ( 2.6%) and Travelers Companies ( 1.3%) were the index’s lonely gainsers. McDonald’s shares weathered drastic changes to its menu, including the suspension of its beloved all-day breakfast items
, but MCD dropped into the red just before the close.
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