Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Stocks - Stocks Plunge as 10-Year Yield Drops Below 1%

Published 03/03/2020, 01:11 PM
Updated 03/03/2020, 02:22 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com – Wall Street fell sharply Tuesday, paced by financials amid a plunge in U.S. Treasury yields to record lows on expectations for more Federal Reserve rate cuts and worries over the ongoing coronavirus spread in the U.S.

The S&P 500 sank 2.5%, the Nasdaq Composite lost 2.8% and the Dow Jones Industrial Average fell 2.8%, or 740 points.

A Westchester County man has tested positive for the coronavirus, New York Governor Andrew Cuomo said on Tuesday, bringing the total of confirmed cases in the state to two and to more than 100 in the country overall.

The number of Covid-19 cases in the U.S. increased by 17 over 24 hours, with at least six deaths reported so far and as many as 108 infected, the Centers for Disease Control and Prevention said.

Against the backdrop of rising infections in the U.S., the Federal Reserve delivered a surprise half-a-point rate cut on Tuesday, taking its benchmark rate to 1% to 1.25%.

With the virus impact mainly on the supply side, many have questioned how much the Federal Reserve's move will support the economy. Still, the move has raised expectations for more cuts in the coming weeks, sending U.S. Treasury yields to record lows.

The United States 10-Year yield fell below 1% for the first time ever, forcing banking stocks even deeper into the red. It set an all-time low of 0.906%.

JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC) fell sharply, with the latter down more than 5%.

Lower interest rates are typically a headwind for banks, weighing on net interest margin – the difference between the interest income generated by banks and the amount of interest paid out to their lenders.

Latest comments

I’ve been telling all of you this for several years now....this generation of traders does not know how to operate if interest rates are higher than 0.25%. Today proves my point once and for all. OK, Millie. Sell until they hit 0.25%....and when they do, I hope you’re enjoying the Great Recession 2.0.
Today is 2020-03-03, 20/20 hindsight with cosmic 3's __ worthy of  -- Do watch the old movie called Trading Places with Eddy Murphy and Dan Akroyd __ Hilarious. It fits right into this crazy game here!
u just can't have it BOTH WAYS: low-interest rates AND high ten-year yields .. Shrug our shoulders. No point freaking out about something mechanical.
Am rich just happy to be alive
DIA's today's high minus its Feb 28 low, diff of that times .618, deduct the result from today's high, and voila: you guessed it: today's low plus change :)
people make money on the way down.. shorting stocks or buying tza, tvix
market went up too fast for no reason.   back to 20,000   this week
they want to do a rising channel .. with a rising bottoms line, (1m) .. WITH SOME serious LUCK we would be retesting a Fib 618 retracement and close much better from here. Clearing higher trend lines right now.
i hope this action killed some of those computer traders
It will have no impact on improving demand and supply sides as fear has grappled the economy. And such sudden move signifies it.
Looks good so far. Consolidation at the hights (1m chart). Let's all keep buying the longs, BTFD! BTFD!
Are mortgsge rates dropping?
We just completed A FIB.618 RETRACEMENT (from 28feb until this a.m.) just now. It should be interesting if we can turn around here.
So...a barely lethal virus, much less dangerous than a flu, is destroying world's capital markets. Manipulation AF.
In Brazil, google for Zika/Dengue Virus. 89,000 cases this year, 450 deaths, no one is talking about. Just the Corona virus is a hotter topic for the news, it helps to increase the TV ratings, and sells.
I live in Italy. Almost everyone who died was 75-90 years old. The death rate is way lower than other virus. So...yeah, barely lethal.
 If it's isolated to Brazil who cares. Coronavirus is hitting major manufacturing hubs, and spreading
So market wanted a rate cut. We get one and it sells off?? WTH?
anyone catch the final score on that china trade deal? did we win?
They won’t be spending anywhere near what trump stated. That’s a given.
4300 people die every day in auto accidents in the usa. 2600 people have died globally so far. So what! You guys are being fed fear!
lol )) based on your statement USA must be located in another planet P)
Car crashes don't impact sales or production
The virus is something serious, BUT WE CAN! RE-AWAKEN OUR innate HEALING POWERS by nourishing with clean and micronutrient dense DRINKING/FLUIDS (including soymilk, coconut milk, almond/cashew milk) and feeding solids secondarily (free up digesting power by drinking more and eating less - proof of that is when we get sick we lose appetite because the body doesn't want to get bogged down with digestion). A green/colorful well-cleaned HOME-MADE salad works wonders for immune and good energy the next day. LET'S REMEMBER: THE DOCTOR CAN'T HEAL us really. The doc can give us meds for temporary support of our systems. But in the end, it's our MIND OVER MATTER to rekindle the innate healing power. Some stretching and fresh balcony air ..
another 50 points will cure the virus for sure. go for it. lmao.
LOL
A twenty percent correction about made up for it already.
i meant, When Outside your home AND expecting to be around people - then put on your mask, such as when sharing an elevator with others. Take sanitary/baby wipes along and keep cleaning your hands and perhaps the elevator buttons with the spent wipe. Do your part in being a good neighbor, fellow citizen!, AND BE RESPECTFUL TO ASIANS!! It's NOT THEIR FAULT that their incompetent, stu'pid head of states, or in the case of South Korea, a nefarious, secretive End of the World cult kept traveling to and from Wuhan during the heat of the virus lockdown there and messed up public life for South Koreans and caused this mishap there. Watch how the Korean gov't races to make amends and tests citizens at the highest speed anywhere in the world, much faster than the incompetent US CDC can do due to years of GOP mismanagement of public funds. Any Asians you see being careless, well then I would point out the errors they make, POLITELY, BUT DO have compassion that they are suffering as you do.
sorry to say...but just cuz CHINA started it, you cannot blame ASIANS...pitty...ASIANS are suffering more than you sir.
All you need is 1.) Put on a mask when outside your home, for peace of mind breathing, and 2.) WASH YOUR HANDS _BEFORE_ AND _AFTER_ touching your mask, 3.) Keep Distance to other people AT LEAST 3 FEET, 4.) eat a HEALTHFUL diet (minimize sugar and bad fats), and 5.) Sleep soundly before midnight. DONE!, DONE!, DONE! If you want to remember these 5 points then do push-ups against a wall on your 5 fingertips and REPEAT THE 5 POINTS OUT LOUD as you place your fingers onto the wall, ONE BY ONE. __EASY__PEASY :)
well said sir...but its not so simple...CORONAVIRUS is something serious...i feel...
🤣
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.