Markets continue sell-off, but tech ends the week up
Markets continued to sell-off Friday, but ticked up in the final 30 minutes of trading on hopes that the U.S. Fed will cut interest rates by 50 basis points on Sunday night. The Nasdaq (0.01%) and big tech names like Facebook (1.43%) and Microsoft (2.42%) actually edged into the green just as the closing bell rang. In contrast, the Dow closed down 1.39% on Friday and down 12% for the week. The S&P sank 0.82% and the TSX plunged 2.72%.
Overall, Friday’s weakness wasn’t as sharp and brutal as previous sessions, though crude oil and gold continued to slip. At least the TSX continued working on Friday after it embarrassingly collapsed from the sheer volume of trading before 2:00 pm Thursday. While investors are betting on a rate cut, the World Health Organization has upgraded the coronavirus outbreak to “very high,” its highest level of risk. These conflicting forces–and any news that pops up over the weekend–will inform Monday morning’s market opening.
Two controversial Canadian stocks were among Friday’s biggest movers: Bombardier nosedived over 14%, while SNC-Lavalin soared 11%. Chipmaker Nvidia shot up 7%, but American Airlines plunged 7.52%. Markets remain in correction territory–the fastest one ever. Will they bounce back Monday or continue to sink? Either way, think long-term.