Wall Street closed the last day of the first quarter of the year on the decline. After swaying at the start of the session, the indices turned negative in the wake of the latest news on the management of the coronavirus pandemic in the United States and in the world: Nasdaq 100 -0.95%, Dow Jones -1.84%. In the US, coronavirus cases have risen to over 172 thousand while in the world they have exceeded 803 thousand. And New York state governor Andrew Cuomo said the United States may have “underestimated” the virus which is “more powerful and dangerous than we thought.”
Coronavirus crisis, Standard & Poor’s and Goldman Sachs forecasts
Meanwhile, S&P has cut its growth forecast for the global economy in 2020 to 0.4% due to the effects of the virus. Goldman Sachs said he expected an annualized drop in GDP of 34% in the second quarter while unemployment jumped to 15% by the middle of the year. There is no use in the rumors that the US government is considering launching a fourth aid package that could revolve around an infrastructure investment program. And a series of data better than expected.
US consumer confidence down, exchanges and oil drop sharply
Consumer confidence in March dropped to 120 points (against expectations for a drop to 110) while manufacturing activity in the Chicago area decreased to 47.8 points (against expectations for a drop to 40.5 points). Despite the recent gains that had allowed the Djia to recover 20% from the lows reached on March 23, the 30-chip blue index remains in line to score the worst quarterly performance (-21.8%) since 1987. While for the S&P 500 (-18.7%), it would be the worst quarter since 2008. Instead, oil rebounded after the losses of the past few days. The WTI contract in May rose 2.29% to $ 20.55 a barrel. The Djia lost 1.0% to 22,104.86; the S&P 500 1.03% at 2,599.61; while the Nasdaq leaves 0.40% on the ground at 7,742.91.