On Monday, the Dow Jones Industrial Average continued its sell off, falling another 582 points, or 3 percent, erasing three years of gains and was on pace to clinch its worst calendar month since 1931. The S&P 500 dropped 2.9 percent, down more than 30 percent from a record close set on 19 February.
Analysts blamed the losing day on the Senate’s inability to end bickering over its omnibus rescue bill.
Today, however, the Dow surged over 2,000 points from its three-year low, on news of Washington’s coronavirus rescue bill that will dump $2.5 into the economy in hopes of propping it up.
Gold closed on Friday at $1,484 and spiked nearly $200 since then, closing at $1,675 on Tuesday.
Bitcoin ended the week’s first trading day at 6,221, holding its own after a precipitous drop last week and edging past its Friday finish of 6,191.
Oil continues to suffer. Brent Crude closed at $23.36 and West Texas Intermediate at $23.82.
Today, on news of a proposed $2 trillion coronavirus aid package, Brent Crude oil gained 22 cents to close at $27.27 per barrel.
TREND FORECAST: The U.S. government’s stimulus measures and the Federal Reserve vowing to purchase Treasury and Mortgage-backed Securities (MBS) to help pump up plunging stocks and keep mega banks and trading houses from crashing will artificially inflate equities and, to a minor extent, the Gross Domestic Product.
Indeed, gold prices have skyrocketed on the expectation that central banks and governments will continue to lower interest rates and inject monetary methadone into equity markets and economies, thus dramatically devaluing currencies.
Bitcoin and gold will continue to rise as investors seek safe-haven assets at a time of unprecedented money injection measures.
