[…] A healthy market correction this week, as it was called by some pundits, thankful that the lack of ‘market collars’ and ‘circuit breakers’ allowed buyers and sellers to find each other without interference. It’s almost romantic sounding.
This was the worst week for stocks since 2008, with the SP 500 and Nasdaq down a little over ten percent.
But it did end on a kind of an upbeat note, as the stock futures recovered today’s losses and managed to go into the weekend in the green.
Several factors contributed to this.
First and foremost, the odds of a rate cut in March jumped to 96.3% today from 8.9% a week ago, we hear. I am struggling with the notion that cheaper benchmark rates are going to tempt people to ignore the coronavirus and go to the mall. But it may put a little life back into the financial asset bubble. Needs must.