The March job report is not helping the stock financial markets today as many investors panic over the impending crash.
The stock markets are closely watching the situation and want to put the crash behind it. But what is the situation on the ground?
A Look at Various Financial Market Articles
According to the Wall Street Journal, employers shed more jobs in March than “in any month since the darkest days of the 2007-09 recession.” Efforts to contain the virus has hurt the economy in more ways than one. Stock Financial markets slumped as every sector from bars and restaurants, air travel, and tourism took the hit. By May, the unemployment rates are expected to be at 16%, and the US will have lost about 27.9 million jobs, according to Oxford Economics.
According to Forbes, three-quarters of major indexes dropped below the uptrend line because of the current COVID-19 crisis. Experts indicate that the damage to the economy is not restricted to the financial stock markets, and it is already happening. Ten million (10m) Americans have lost their jobs in the past two weeks, while mortgage applications were down by 24%.
Stock Market News
The Market Watch reported that stocks closed low after the release of US employment data. This trend was despite the full effects of the COVID-19 still not being experienced. Dow Jones, S&P 500, and Nasdaq all closed with negatives of -2.7%, -2.1%, and -1.7%, respectively.
However, it is not all gloom in the financial stock markets. According to Goldman Sachs, stock financial markets have not found the true bottom yet. They have to fulfill certain conditions before that can happen. According to the company’s US strategist, David Kostin, the S&P can finish the year at 3,000.
The end of the oil price war between Saudi Arabia and Russia, coupled with the US stimulus package, provides a glimmer of hope. According to CNBC, over 58,000 customers applied for over $6 billion in just a matter of hours, while more funds are on the way.