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Stocks – Wall Street Falls Again, but Late Buying Limits the Damage

Published 03/06/2020, 03:59 PM
Updated 03/06/2020, 04:06 PM
© Reuters.

© Reuters.

By Kim Khan 

Investing.com - Stocks closed in the red Friday, but well off lows thanks to some late-day buying in what was another hectic final hour of trading.

The S&P 500 lost 1.71% and the Nasdaq Composite sank 1.87%. The Dow fell 0.98%, or 256 points.

As stocks fell, bonds rallied, pushing yields to historic lows again. The benchmark 10-year Treasury yield stood around 0.7%. It slipped below that level for the first time ever earlier.

Energy stocks bore the brunt of the selling as oil prices plunged 10% after OPEC and Russia failed to come up with a deal expected to cut 1.5 million barrels per day off global supply.

“Despite the expectation that Russia was just trying to play coy with the market for maximum market effect … their resistance to production cuts is real,” said Phil Flynn, analyst at the Price Futures Group brokerage in Chicago.

In a market experiencing this many sharp swings, sudden bursts and record-sized moves, it seems almost quixotic to pinpoint one reason why stocks were up or down.

But looking at bonds and fed funds futures, the market is telling us that it really wants rates down and indications of that could have been enough to spur the late-session buying.

Federal Reserve regional bank presidents John Williams and Eric Rosengren, who participated in New York event today, were hinting at more rate cuts to come, according to published reports.

That might have eased some worries that the strong February payrolls numbers would give the FOMC pause about cutting again.

Latest comments

GOLD will shoot next week. Screenshot this,
Successfully sold my TLTs and bought AAPLs.
Or to early to buy AAPL
 No worries, just picked up AAPL just 10% of total investment while sold 70% for TLT.
same here
Those Russians, not letting the production cut, were about to bankrupt the world today .. hey Vodka, the revenge is coming soon .. pay day .. coming soon
I came close to pulling the trigger as well on an ETF down to 129 from 139 yesterday at 3:15 or sho today. By the time I got home it was back up a couple bucks so I'll wait but should have called it in from the car -
I started buying around 1400 CST. caught some nice pops. Finally got to a point where there are some incredible equities on sale. Guess everyone else felt the same.
Perhaps it was the statement a Chinese doctor mentioned earlier that the ABBV drug is ineffective. The GILD drug which has been showing increased promise with results promised by April but more likelylatedt this month. Cure? Vaccine?, maybe but it HAS been dubbed a treatment the company seems very positive on. This would be a market mover if within a couple weeks they have a treatment !
Wicked movement very commonly happens at the end of the day. It doesn'r mean it was the PPT.
Yeh right , this is very common 😂
yes, it looks like it will last long enough ********
It was the computers taking out the weak handed shorters.
👍
https://www.investopedia.com/terms/p/plunge-protection-team.asp
Why was there late buying? There was no reason to buy with the virus cases increasing, oil plummet and record low 10y ust? How about you write an article about the abnormal 10 min final rallies?
Yep. this correction way overdone. we are going to hit some rough patches but the US economy is on fire. way different than 08. This is when you make money. Buy the fear.
The 100 billion overnight repo funds used for leveraged algo trading by the big funds makes the final push. That is my idea at least.
  It is a flu and not life threatening. But it is highly contagious and no vaccine to prevent yet. Imagine a 10% of population sick for 3 weeks, with no fatalities. How much of purchasing power will down, how much GDP is lost. If a person is sick, their family will not go shopping. Hope you agree with this.
They were too ashamed to pump all the way back to positive territory that would have been "too" obvious lol.
Pre weekend short covering is nothing to cheer about.
This level of market manipulation will get very ugly soon.
LOL, "BUT LATE BUYING LIMITS DAMAGES " I wonder who the late buyers are. could their initials perhaps be PPT? again interfering with true price discovery. wow the American people are afraid of the word socialism, but when it comes to the market, they're fine with fascism & socialism
 Plunge Protection Team
Elections year soon the panic will be over
I was a buyer big time.
thanks PPT  ;-)
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