After two days of heavy selling, stocks got caught in a volatility tunnel today with the Dow both up 400 points and down 200 points at different parts of the trading session. This is a pattern that we have seen since the financial crisis a dozen years ago. After a big, but quick selloff, we get heightened volatility- days were stocks move violently throughout the trading session. Of course, for the foreseeable future stocks will be reacting to each and every coronavirus headline. Volatility is likely here to stay for a while.
As for today, by the close the Dow Jones Industrial Average was down 123 points to finish the day at 26,958. The S&P 500 was down 11 points to close at 3,116. Gold was down $4 to trade at $1,645 per ounce, while oil was down $1.08 to trade at $48.82 per barrel WTI.
The President is going to speak on the virus later this evening, so futures markets are likely to move on those headlines overnight. Again, expect heightened volatility in the near term.
Have a nice evening everyone.