Market Update: Thurs, Mar 12, 2020 | LPL Financial Research

DAILY INSIGHTS

Futures down limit again. The S&P 500 Index opened sharply lower this morning, with S&P futures hitting their 5% loss trigger in pre-market trading for the second time this week. Markets are clamoring for an aggressive stimulus package from Washington as the outbreak—now officially a global pandemic—continues to spread, many US consumers shut down, and certain segments of the US economy face significant disruption. The news over the past 24 hours that more major events had been cancelled, including the NBA basketball season, and a major celebrity, Tom Hanks, had contracted the disease added to fears but will at the same time help accelerate containment.

Dow enters bear market; S&P 500 and NASDAQ to follow. The S&P 500 opened in bear market territory this morning, ending the longest-ever bull market that appears to have ended on February 20, less than one month ago. The 19-session bear market decline from an all-time high for the Dow Industrials was the fastest ever, beating the next fastest bear market in the Dow by nearly 20 days. The quicker these indexes can find their lows the better, as a once-in-a-decade opportunity may be emerging for investors who have dry powder. The progress toward containment in China is reassuring, though we certainty empathize with nervous investors as our daily lives are disrupted and we all wait for signs that the crisis has peaked. We will discuss the quick move to a bear market later today on the LPL Research blog.

 

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This Research material was prepared by LPL Financial, LLC.

Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC).

Insurance products are offered through LPL or its licensed affiliates.  To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.

  • Not Insured by FDIC/NCUA or Any Other Government Agency
  • Not Bank/Credit Union Guaranteed
  • Not Bank/Credit Union Deposits or Obligations
  • May Lose Value

For Public Use – Tracking 1-964497