- Coronavirus fears resume, rattling markets at close of trading week
- Dollar, yields slide
- Oil plunges
Investors remain fearful, notwithstanding last Tuesday’s emergency by the Federal Reserve, a move by some analysts. Unfortunately, it only exacerbated investor concerns, by signaling to many that the U.S. central bank was panicking, and led to an immediate sell-off that continued through the week.
Perhaps more worrying, it took off the table future tools the Fed might be able to use to counter any recessionary problems that could be upcoming from coronavirus-fueled business or manufacturing slowdowns. It also pushed Treasury yields to historic new lows, which, though still in positive territory are now below 1%.
As well, though a surprisingly robust release on Friday showed 273,000 new jobs were created in February, the Covid-19 scare has more than offset the positive numbers. After the print, the dollar resumed a decline to a yearly low and stocks sold off for the second…