From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
MARKET ROLLER COASTER: Stocks around the world had an extremely tumultuous week. In the U.S., aside from the "Biden bump" that lifted markets after the former vice president's surprisingly good Super Tuesday, the trend was down, down, down. Indexes extended losses Friday, a trend that has become somewhat routine as investors move to the sidelines ahead of the weekend and the uncertainty surrounding the coronavirus outbreak.
TO BUY OR NOT TO BUY?: Contributing to steep declines late in the week was the shocking drop in the 10-year Treasury yield, which at its current level means bonds are paying out less than one percent in interest as investors buy them up, part of a larger flight to safety. That's not all bad news, especially for homeowners and those in the market for new digs. Mortgage rates, which follow the 10-year, continued to fall all week, reaching an all-time low below 3.3 percent, according to Freddie Mac. Rates on the 15-year fixed and ARMs are also testing lows not seen in years. That is expected to impact what was already going to be a brisk spring real-estate market unless potential buyers decide to take a step back over fears that the economy is heading toward a protracted downturn or recession because of the outbreak. Time will tell.
JOBS BLOCKBUSTER: A blowout February jobs report wasn't even enough to make a material impact on stocks. The U.S. economy added a staggering 273,000 jobs in February, thanks in part to a mild winter around the country that helped hiring. It was probably too early to see the coronavirus' impact on the labor market; economists will get a better idea of how much the outbreak is affecting the employment picture in next month's report. But the February report was far above expectations, showing the strongest jobs gains in more than a year. January and December numbers were revised higher, and the unemployment rate ticked down to 3.5 percent.
CORONAVIRUS INFECTS AIRLINES: Among the worst hit sectors this week: the airlines. Despite the price of crude oil tumbling as part of the broader market fall, airline stocks were unable to find a silver lining. United, Delta, American, JetBlue, and other worldwide carriers saw their stocks plunge as the coronavirus contagion takes a major bite out of global tourism with no signs of slowing. United, JetBlue, and the German flag carrier Lufthansa all announced steep cuts to domestic and international routes. United is cutting international service by 20 percent and North American routes by half that. The airline is also implementing cost controls, including a temporary hiring freeze, as it prepares for a larger fallout from the drop in demand. Also, a struggling UK-based regional carrier called Flybe collapsed on Thursday, citing the coronavirus outbreak as the final straw.
DIMON RECOVERING: JPMorgan Chase says its longtime CEO is recuperating following emergency heart surgery to repair a torn aorta. Dimon, who is 63 and has run the world's most valuable bank since 2006, reportedly checked himself into the hospital after experiencing chest pain. Two JPM execs, Daniel Pinto and Gordon Smith, will steer the ship while he recovers. Dimon is the longest-serving chief of a major U.S. bank and among the most powerful executives on Wall Street; he's beaten cancer, not to mention keeping his role and influence through the 2008 financial crisis and ensuing recession.
