Featured Market Data
Initial Unemployment Claims Soar
A record 6.6 million workers applied for unemployment benefits in the week of March 22-28, a level nearly 10 times greater than the peak level of claims reported in 2009 during the Great Recession. This report follows 3.3 million claims in the prior week’s report, as the novel coronavirus brought the U.S. economy to a near stop. Markets have been expecting poor economic news. In March, the S&P 500 stock index dropped more than 20% from its peak, falling into a bear market. Corporate spreads, a market measure of credit risk, widened sharply during March. Both stocks and bonds have improved from their weakest levels following multiple actions by the Federal Reserve and Congress to alleviate market strains.
Source: Wall Street Journal, Bloomberg
Recent News
More Difficult Times Ahead
As of April 1, the global coronavirus death toll topped 44,000 and cases passed 880,000. The U.S. has more confirmed cases than any other country and experts now project the U.S. could suffer up to 240,000 deaths. These grim numbers are frightening and sad. We believe the impact on the psyche of consumers and businesses may be long-lasting. GDP and corporate earnings are projected to plunge in the second quarter and the recovery may be slower than initially projected. The increasing toll of the virus on the U.S. health system and the extended timeframe for sheltering in place may result in another significant market downturn in the weeks ahead.
Source: Bloomberg
