As of 9:10am Dow futures are trading at a 816 loss, which puts them in the red this morning pre-market. This is a move that suggests we could be set to expect another day of volatility ending in the red.
The market was hopeful about a stimulus package which failed to materialize into anything concrete from the White house. Earlier in the week, Trump signaled the stimulus package, but there have been no concrete details from the Administration on this, and Wall Street seems to be reacting to the uncertainty.
Potential payroll tax cuts
The proposed stimulus package from the Trump Administration has supposedly included payroll tax cuts to help alleviate the damage caused to the economy by the novel coronavirus outbreak spreading globally.
President Trump said the overall stimulus package is “very major,” and are said to include not just tax cuts, but also gave works other protections to combat their exposure to financial damage by lost wages during the outbreak.
2008 all over again?
Lots of talk about a looming recession the past several weeks as the novel coronavirus spread and exposed cracks in the financial system.
However experts are saying that this is probably not the case as experts are saying. “A recession is not inevitable,” stated Gus Faucher, chief economist at PNC Financial Services Group. “If we do get a recession, it is likely to be brief and much less severe than the Great Recession,” he goes on to say.
Experts are saying that this downturn could be short lived and more along the lines of a natural disaster or act of God. However much of this is yet to be determined as the market continues its volatility oscillating downwards.
Hardest hit sectors
Right now the industries hardest hit by the current crisis have been the travel and tourism industry.
“There are dramatically fewer people flying this week than there were last week,” said Nicholas E. Calio, chief executive of Airlines for America. “Flights are being taken down because people aren’t getting on airplanes.”
The airlines industry is looking to lose between $63 and 113 billion dollars this year in lost revenue.
The overall impact of this massive decrease in travel on the economy have yet to be seen.