Stocks rallied fiercely this afternoon after President Trump declared a national emergency and announced other measures that show that the federal government appears to be “all-in” in the fight against Covid-19. We already know that the Federal Reserve will be all-in, so at least the fiscal and monetary responses are encouraging. The virus is going to be a difficult medical battle, but at least we seem to have some good news today on the economic front.
As you know this was a wild week of trading, but with today’s late rally we did at least wipe out most of yesterday’s losses. By the close, the Dow Jones Industrial Average was up 1,985 points to finish the day at 23,185. The S&P 500 was up 230 points to close at 2,711. Gold was down $71 to trade at $1,518 per ounce, while oil was up $1.78 to trade at $33.28 per barrel WTI.
As we have mentioned, this is going to be a process where there likely will be more difficult moments ahead. We did make some progress today, but we are still early in the battle. The markets are going to be volatile for a while responding to headlines on a daily basis. We need to remain calm and let this play out. We will get to the other side of this thing, and these moments always look terrible when you are in the middle of them.
We have spoken to so many of you over the past couple of weeks, but for those of you who aren’t clients of ours (and I know there are many of you out there who read us daily), I hope these updates have been helpful to you. We’ll continue to keep you updated as this crisis plays out. Stay with us.
Try to have a great weekend everyone.