Coronavirus Fears See $400 Billion Wiped Off China’s Stock Market

By Isabel Togoh Topline: Chinese markets closed nearly 8% down on the first day of trading since the extended Lunar New Year holiday over fears of the coronavirus and measures taken to control the fast-spreading, pneumonia-like virus. China’s benchmark stock index, the Shanghai Composite, saw its worst day since August 2015. It closes nearly 7.72% down in a $393 billion share selloff that saw the majority of stocks suspended after hitting the 10% daily volatility limit.The fall came despite efforts by China’s central bank to ease the impact of the virus on the world’s second-largest economy with a $173 billion package announced on Sunday to provide liquidity in the banking system and currency market. To read more:

China Frantically Shuts Down Stock Market to Prevent Coronavirus Selloff

By William Ebbs Chinese authorities have announced that stock markets in Shanghai and Shenzhen will remain closed until next Monday as fears over coronavirus continue to swirl. But it may not be enough to stop a selloff once markets reopen next week.| Image: shutterstock.com Chinese authorities have decided to suspend trading on the Shanghai and Shenzhen stock exchanges.This move comes as the Wuhan coronavirus outbreak grows in size and severity.The government is kicking the can down the road. Investors can expect a massive correction when trading resumes next Monday. China’s financial markets will remain shuttered until Feb. 3 due to coronavirus fears, according to separate announcements from the Shanghai and Shenzhen exchanges. The move comes as the Wuhan coronavirus outbreak grows in size and

GOLDMAN SACHS: Lagging fund inflows can drive the stock market even higher

By Ben Winck The stock market is having room to run even higher this year despite a 29% gain in 2019 and warnings of a reversal, Goldman Sachs analysts wrote.Fund inflows are lagging the surge in US equities, leaving plenty of cash to fuel additional market records, the team said in a Tuesday note.The investment bank also noted that traditionally safer assets like government bonds and cash haven't yet seen "meaningful outflows," suggesting that "a large portion of positioning has still not moved into equity."Watch Goldman Sachs trade live here. The US stock market has surged to record highs numerous times throughout the new year, and Goldman Sachs views a few factors as fuel for driving prices even higher. While retail investors have piled back

As the stock market races to uncharted territory, ‘irrationally bullish’ investors are getting nervous

By MARK DECAMBRE Where is this dazzling bull market headed in the coming days and weeks? That is the trillion-dollar question some nervous strategists, analysts and traders are wrestling with, following a relatively brisk rally for equities to kick off 2020. So far, major indexes have checked all the boxes for the bulls. The Dow Jones Industrial Average DJIA, +0.17%  traversed a milestone at 29,000, the S&P 500 index SPX, +0.39% followed with its own landmark turn above 3,300 and the Nasdaq Composite Index COMP, +0.34% is rallying like it is 1999. And that’s all within the first 11 trading days of 2020, in which the Nasdaq (and the S&P 500) have closed at all-time highs more than half the time. To read more:

Jerome Powell Secretly Knows the Federal Reserve Is About to Crash the U.S. Stock Market

By Sam Bourgi  Federal Reserve intervention in the U.S. financial system has increased since September, and the trend is expected to continue.Fed Chair Jerome Powell admitted the dangers of an ever-expanding balance sheet all the way back in 2012 but seems to be strangely silent on the subject today.Surging stock prices represent one area of the market experiencing excess and imbalance as a result of the Fed. The Federal Reserve’s ongoing repo-mania has breathed new life into the U.S. stock market, instilling a can’t-fail attitude in the mind of investors who have seen their asset values levitate on an almost daily basis. Fed Chair Jerome Powell doesn’t seem all too concerned about the excess spilling over into the stock market. But a closer

Stock market shakes off Iran jitters for now, but investors could still be in for a bumpy ride in 2020

By Jessica Menton The stock market has shaken off its jitters over Iran, but analysts say investors could still be in for a bumpy ride this year.  Stocks are back near records, a sharp turnaround after Iran's missile attacks sent futures tumbling Tuesday evening. Major averages rebounded midweek after President Donald Trump said the U.S. doesn't seek a war with Tehran. As investing pros looked ahead at the end of last year, they saw a 2020 full of uncertainty – something investors hate –  because of trade tensions with China and a presidential election in the U.S.. Now hostilities with Iran have thrown another unsettling element into the mix.  “Investors have to stay the course because it will likely be a volatile year,” says Ephie Coumanakos, co-founder and managing partner of

Stocks climb in the ‘first five days’ indicator, sending bullish signal for 2020

By Yun Li Stock Trader’s Almanac found that the first five days have a good track record of predicting market performance for the whole year.When stocks finish that period higher, the S&P 500 has been positive 82% of the time at year-end with an average gain of 13.6%.Stocks finished the first five trading days of 2020 higher, with the S&P 500 rising nearly 0.7%.It wasn’t all smooth sailing, however, as an escalation of U.S.-Iran tensions during the period spooked investors. Stocks finished the first five trading days of 2020 higher, setting up for potentially strong performance in the full year, based on an old Wall Street indicator. If stocks perform well in the initial couple of sessions in a given year, the market

Iran Ignites Stock Market Doom: Even the Fed Can’t Save a Dow Jones Crash

By Joseph Young Dow Futures crashed by 455 points at their lowest point as conflict with Iran intensifies.The U.S. stock market is vulnerable to a big correction, especially with markets reacting negatively after a liquidity injection.Even a rate cut in 2020 may further slow the equities market. After reports of Iran firing missiles targeting U.S. troops in Iraq, Dow futures crashed by 455 points. The steep drop in the U.S. futures market comes after the Fed injected new liquidity into markets on Jan. 7. Relaxed financial conditions triggered by the expansion of the repo market have been attributed as the major driving factor of the recent stock market rally. And even fresh liquidity has not been able to stop the Dow Jones pullback. To read more:

Dow Futures Rise with Stock Market at Brink of Epic Euphoria Rally

By Ben Brown Dow Jones Industrial Average (DJIA) futures bounced back in early trading Tuesday, shaking off the geopolitical tension between Trump and Iran.The stock market is now at ‘extreme greed’ which is likely to trigger a flurry of investors FOMOing into stocks.Prominent economist Jeremy Siegel warns of a final euphoric melt-up before stock market correction. After two jittery days on the stock market, Dow Jones Industrial Average (DJIA) futures point to a strong rebound on Tuesday morning. And despite rising geopolitical tensions, all signs point to a final, euphoric blow-out for the Dow and S&P 500. To read more:

Stocks set fresh records as new year kicks off

By WILLIAMWATTS U.S. stock indexes surged on the first trading day of 2020, with bulls looking to build on the best year for the S&P 500 since 2013 as global equities rallied following a move by China’s central bank aimed at stimulating the country’s economy. The Dow Jones Industrial Average DJIA, +0.55%  rose about 173 points or 0.6%, to 28,712, while the S&P 500 SPX, +0.32%   was 15 points, 0.5%, higher, to touch 3,246. The Nasdaq COMP, +0.64%  jumped 71 points, 0.8%, to touch 9,043. All three indexes hit fresh intraday highs in early morning action. Financial markets in the U.S. and much of the world were closed Wednesday for New Year’s Day. Wall Street ended 2019 on Tuesday with modest gains that capped a blockbuster year for equities. The S&P