Grim Economic Outlook Grips Markets as Stocks Plummet

Stocks dropped even as central banks tried to prop up economies, indicating the tactics that helped in past financial crises might not work against a global pandemic.

Comments: 42

  1. I see no real reason for stocks to go up at this point. Other than people's impulse to jump on the greed train in hopes of taking a free ride to the top of the pyramid scheme.

  2. Can we please shut it down! It is totally irresponsible to see good people's savings disappear. The Stock Market at one time was known as a rational place. It is far from that now with computers and algorithms dictating the direction when mathematically and heuristically a virus event like this can not be predicted or inserted into these programs. This is unnecessary suffering for those that have honestly saved.

  3. @BW You can't shut the markets just because they drop. It's not all upside and no downsides.

  4. When you have an epidemic that is shutting down everything from the NBA to your neighborhood restaurant, it's not really a problem you can make go away with another interest rate cut. It's a public health problem that needs to be solved like a public health problem, not just another product of some Wall Street speculator's fevered imagination.

  5. I expect this will fall on deaf ears because people want to panic currently but I Would be interested to hear what the markets in China are doing. I hear everyone is going back to work and that the entire Covid 19 situation took approximately six weeks. Why aren’t our markets using this obvious precedent and beginning to realize this will pass just as quickly instead of doubling down on panic?

  6. @Independent China built new hospitals in a sort span of time, quarantined people with only mild symptoms, rounded people up, and closed cities. Good luck repeating that strategy in a Western democracy with a convoluted, short-staffed health care system. Also, Trump himself stated this could last until July or August.

  7. @Independent Namely because that is not true. Large swaths of China are still quarantined, and factory production has not resumed. This is why automakers are closing factories here - they can't get their Chinese-made parts.

  8. @ independent, your statement is utterly false. It took China 5 months to get the virus under control, and only after locking down the entire country. Good luck with doing that here.

  9. Yes of course it would. But that would be —gasp— socialism! That’s why the beautiful infrastructure bill that Trump promised, never happened. Because in the mind of Republicans, regular maintenance and highways that other infrastructure is not a legitimate function of government (Unless, of course, Kushner can make some money out of it.)7

  10. Friday trump tweeted out a graph to emphasize how the market went up 9% near the end of the day.! Sure was quick to claim ownership of that. But no Dear Leader tweets of the market today? Guess today was an anyone but trump Market.

  11. Idiotic! Up by any percentage from a disastrously low level now, thanks to a clueless administration paying no attention to health or economic realities, is not a reasonable, believable rise. It is still a loss over the past few days.

  12. Old enough to remember DOW breaking 1000. Now wonder if I'll see it break 1000 the other way.

  13. Can anyone explain to me what in the heck is going on here? On Thursday of last week, the stock markets plunged in its biggest decline since the 1987 crash. On Friday of last week, it had its largest *increase* since October 2008. Now today it suffered its worst day since the 1987 crash, in exceeding the dive of last Thursday. As I type this, market futures for tomorrow are up and rising fast. So trillions of dollars are going on and off the table on a day-to-day basis. Umm, maybe some very large, monetized entity is gaming the whole system? Just sayin'.

  14. @wkb Yes we did it. I did it. My family. I found a note in my basement. "We gamed the whole system - signed, Morty."

  15. Maybe it’s just that no knows what is going on. Trump just keeps juicing the market with free money, but reality keeps dragging it down. Where is the indignation from tea party now? Crickets. I guess hypocrites got their tongues tied.

  16. Who could have predicted that Donald, the guy who bankrupted multiple casinos and other assorted enterprises, defrauded charities, evaded taxes, cheated contractors, paid hush money to porn stars, etc., would lack the requisite skill set for the Presidency?

  17. Well who didn't see that coming? It will get much worse because the only people Trump listens to are Fox employees and dictators... He should admit he's over his head and call Obama, and Clinton. I would say Bush as well but he tanked the banks on his watch. Heck , call Biden, they are patriotic people and care for the country and the people in it, do that right now.

  18. In an accompanying NYTimes article today, "America’s Economy Begins to Shut Down as Pandemic Measures Take Hold", are the following quotes: 1. "Roughly four out of 10 Americans don’t have enough cash on hand to cover an unexpected $400 emergency expense" 2. "“People don’t have reserves, they live hand-to mouth” said Joseph Stiglitz, a Nobel-winning economist" Even after this recent stock market drop....stocks are still up substantially over the last decade. It is absolutely obscene to continue to read about the stock market "woes" of millionaires (they only have $7 million instead of $10 million).....while 40% of Americans are living "hand-to-mouth".

  19. The markets will not improve until the virus infection numbers start coming down. It doesn't matter how much money the Fed pumps into the economy. The problem is not supply of cash, but economic demand. In some ways, lowering interest rates makes existing corporate debt even riskier for default, so it's not clear if the Fed's actions in cutting interest rates to zero are helpful. The number of new cases in the last 24 hours in the US spiked to 983. We need to lock down all urban areas with known infections now, synchronized across the country. The entire Bay Area, which has been the US economic engine for the last decade and would rank globally as 18th in terms of GDP if it were a country, is in a lockdown for the next three weeks starting midnight. France is in a lockdown as well. We lost a lot of time in combatting the virus. The more we delay the worse it's going to get. It's time for states and counties to shut down for a few weeks as it seems the federal government is incapable of much action.

  20. When a reporter asked Trump, on a scale of one to ten, how he would rate his own handling of the coronavirus crisis, Trump said, “I’d rate it a 10. I think we’ve done a great job.” A really confident president would have turned the question around and asked the reporter, "What do you think?"

  21. @ernieh1 : Would you have expected Trump to say anything other than a "10" - the man is always right, has never made a mistake, is perfect in every way - a more perfect human being never has nor ever will walk the earth. And it is this delusional thinking of Donald J Trump that has placed the United States of America in unprecedented economic peril in less than 4 years. God help us if he is reelected for another 4 years. November 3 2020 vote him out and save our country from the greatest narcissist to walk the earth.

  22. I wonder how the market would respond if Donald resigned?

  23. Live by the market highs, die by the market lows. The market has been artificially kept high by various tricks including low interest rates, buyback bonds and that huge tax break whereby companies used it to buy back stock and now have nothing in reserve. Meanwhile the debt soars. Sadly many of Trump supporters and we have to factor in Putin have been waiting for this. In panic rules get relaxed, regulations go away and buying stocks now guarantees huge returns in the future. It's always those without the power that get hurt the most. Narrow and closed minds, caring only about their issue continue to support a president so incompetent and without empathy that it may destroy much beyond repair. I find that the saddest of all.

  24. Can somebody explain to novice investors what the impact of this drastic drop in the stock market—ie, equities but not bonds—actually means for bonds? Can’t be all that good, can it, even of stocks and bonds maybe move in opposite direction?? Thanks!!

  25. The ImPOTUS has finally come across a problem he can't lie, cheat, steal, finagle, sue, or buy his way out of.

  26. Poodle Powell followed his master's orders and lowered interests rates. Corona virus is now in retreat. The Trump Economic Miracle continues. With epic skill, the Great Helmsman has steered a Bull Economy started and sustained by Barack Obama on to the rocks. A Bear Market Making the Russian Bear, Trumps master, HAPPY HAPPY HAPPY.

  27. I am a Dem but question what the response of NYT commenters would be if this all happened to a Dem administration? Would you still be gloating? Trump, for all his faults, is not responsible for the downturn in the economy and certainly not covid-19. Your collective schadenfreude is disgusting.

  28. No not his fault but his ineptitude has made it much worse. We lost about 2-3 weeks of opportunity to help slow this down and set up a command and control operation by the CDC, which he gutted.

  29. Yes, he actually is. Bullying the FED into lowering interest rates when they should have been raising them helped create the bubble that is now bursting. More to the point, this is a president that has pointed to the stock market as his number one metric of his success. Now he gets to own it. And I call nonsense when you say you’re a Democrat. Just a ruse Trump supporters use to bolster their argument.

  30. November 3 2020 : GET HIM OUT AND LOCK HIM UP!

  31. Individuals needs a government bailout — NOW! A tax-free gift to every man, woman and child in this country. Give us $5,000. Apple gets billions in tax breaks, as do banks and other enormous companies. If Trump and Company can’t swing it, ask your friend Vladimir Putin or MBS from Saudi Arabia. You adore them and they are beholden to you in some fashion. Make it happen. Step up. Save America. Remember when you elicited groans from hugging the flag? Prove you mean it. Send checks out NOW. Millions are suffering and will suffer due to your gross incompetence.

  32. Trump sure seems to be panicking over the Democrats' hoax now....

  33. Why are there any casinos open in the United States ? In this time of National Emergency, when there is almost no leadership at the national level, it falls on our governors to do the right thing, to earn their taxpayer-funded salaries rather than lobbyist generated campaign contributions. If the right thing to do is to close down schools, how can one possibly justify leaving casinos open? In some areas casinos are run by First Nations (a.k.a. Indian) peoples. Some tribes, such as the Pojoaque Pueblo in New Mexico, showing more sense of collective responsibility than some businessmen and governors, have closed down their own casinos. Others, acting in the tradition of other "only the dollars matter" Americans, have failed to do so. This poses legal sovereignty impediments for some governors. However, those governors have the power to close down roads leading to the casinos and should do so, immediately after closing down all non-Indian casinos.

  34. Honestly, everyone 18+ should be issued a $5K check to inject right back into the economy. It would ease nerves and have real time benefits.

  35. Way back in Sept 2019 something strange happened when the Fed Funds rate spiked from the target range of 175 bps - 200 bps to over 1,000 bps (10%). The Fed responded with a massive injection of liquidity via the Repo Market that was intended to drop the rate back down to the original range, which did happen. Please remember this is long before anyone ever heard of the coronavirus and COVID-19. What happened next is that the Fed simply could not stop the banks from needing daily injections of $20 to $50B, in total according to the NY Fed website $9.1 trillion was injected less $456 Billion in reverse repos, net ~ $8.6 Trillion to keep liquidity in the system. In other words long before investors ever heard of the coronavirus and the recent panic selling, the banks were already on life support. Sunday's announcement included a statement that the Fed has suspended net capital requirements, this should tell everyone what they don't want to hear - one or more of the member banks is no longer in compliance with Net Cap regulations. Think 2008 redux. Rumors say it's JP Morgan Chase. Happy dreams!

  36. In our country's response to the coronavirus crisis— From market and financial collapse, to ICU bed and respirator shortage— The real emergency is Trump, who has no credibility and no trust. He needs to be forced to resign.

  37. Having grown up in the birth of the atom bomb era, why can we not treat this virus as an enemy stronger and more deadly than our war against Japan by embarking on a modern day Manhattan Project? The pandemic of 1918 took over 50 million lives. Are we prepared for a repeat performance? The best of the best in the science world must be recruited - where is Einstein when we need him - for this task.

  38. There is zero national leadership. That’s why the country is tanking.

  39. First thing I'm going to refuse to pay are the credit card interest style federal student loans. They've earned enough off the backs of desperate students born into poor families.

  40. The vaccine is information. We have information; a lot of it. And the information has revealed to everyone, the depth of the ignorance of Donald Trump and the group that he represents, conservatives, republicans that are fundamentally fascist bigots. It is a demographic that we can see highlighted around the world and particularly represented by the people with whom Trump attempts to establish relationships. First, Putin and last Modi. Fascist bigots. The rest of us, clearly the majority have not agreed with the basic principles of these people and have been unwilling to engage in the time-tested warfare with which these disagreements have been resolved in the past. Trump supporters got the voice they deserved and it needed to be heard and we now how confirmed what a dangerous voice it is. This vaccine will be painful but not so much as one that is distributed by guns.

  41. Congrats to Seattle and Moderna Pharmaceuticals for getting started MONDAY the 16th with testing on a Wuhan virus vaccine. Tests are useful - but a vaccine would be fabulous!

  42. Where Lenin failed it seems this small virus will succeed. Strange indeed.