New York Stock Exchange building is seen at the Financial District in New York City, United States on March 29, 2020. New York is ranked as one of the largest International Financial Centres ("IFC") in the world, now seen so quiet due the Covid-19 pandemic. (Photo by Tayfun Coskun/Anadolu Agency via Getty Images)
U.S. stocks are shaky in early trading on Monday, as markets around the world made tentative moves amid all the uncertainty about whether global authorities can do enough to nurse the economy through the coronavirus outbreak.
The S&P 500 was up close to 1% in the first half-hour of trading, renewing gains after falling close to the flatline. European markets were mixed after paring earlier losses. Asian markets were down, but by more modest degrees than the huge swings that have rocked investors over the last month.
Some of the sharpest action was in the oil market, where benchmark U.S. crude fell more than 6% and dropped below $20 per barrel at one point for the first time since early 2002. Oil started the year above $60, and prices have plunged on expectations that a weakened global economy will burn less fuel. The world is awash in oil, meanwhile, as producers continue to pull more of it out of the ground.
The tentative market moves follow last week’s stellar performance, where the S&P 500 surged 10.2% for its biggest weekly gain since the market hit bottom in 2009 following the financial crisis.
Most voices on Wall Street are telling investors to prepare for more losses as economists forecast a downturn that could surpass even the Great Recession, but the first green shoots of optimism may be appearing.
Congress last week passed a $2 trillion rescue package for the economy, and the Federal Reserve promised to buy as many Treasurys as it takes to get lending markets working smoothly. Forced selling by investors looking to raise cash may also be easing, and Morgan Stanley strategists said the worst may be behind us. They say another pullback in stocks is likely, but they say the roughly 25% drop for stocks since the S&P 500 set its record last month offers some buying points for investors willing to wait six to 12 months.
Goldman Sachs, though, warned the market will likely turn lower in the coming weeks.
Most investors say they expect markets to remain extremely volatile until the virus slows its spread. Until then, investors won’t know how long the economic downturn will ultimately last.
President Donald Trump extended restrictive social distancing guidelines through April, bowing to public health experts who presented him with even more dire projections for the expanding coronavirus pandemic.
Global infections now total more than 720,000. And more than 34,000 people have died around the world.
Most people who contract COVID-19 have mild or moderate symptoms, which can include fever and cough but also milder cases of pneumonia, sometimes requiring hospitalization. The risk of death is greater for older adults and people with other health problems.
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Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
