Lower open despite strong Fed action over the weekend. Stocks opened sharply lower this morning, giving back most of Friday’s gains after S&P 500 futures fell by their limit overnight. Markets are showing little indication that they will find calm today after one of the most volatile weeks ever, though these big swings and heavy volumes may be part of the bottoming process. COVID-19 cases continue to grow and “social distancing” efforts are strengthening around the country. A big jump in cases and fatalities in Italy and more evidence of a deep economic contraction in China in economic data overnight may offset any reassurance from the latest policy responses and successful containment efforts in China and South Korea.
Forecasts to come down. The global COVID-19 pandemic has caused significant economic disruption globally, sending stocks into a bear market for the first time in over a decade and yields to record lows. The uncertainty makes forecasting difficult, and we acknowledge the potential downside risks. Look for updated targets from us over the next 24 to 48 hours.
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