San José, CA – On Thursday, March 19, the Department of Labor reported a surge of applications for Unemployment Insurance (UI) benefits as the COVID-19 pandemic began to bite into the economy. For the week ending March 14, a seasonally adjusted 281,000 claims were filed, up 70,000 (or one-third) from the week before and much greater than the predicted 220,000. A National Public Radio poll also conducted last week showed that 18% of all households had already lost income from layoffs or reduced work hours.
San José, CA – The fall in stock prices gained speed on Wall Street on Monday, March 16. By the closing bell, U.S. stocks had the largest drop since the crash in October 1987, with prices down almost 13%. The headline Dow Jones Industrial Average fell 3000 points to end just above 20,000, while the tech-heavy NASDAQ fell almost 1000 points. A circuit breaker kicked in within minutes of the market opening as the broad S&P 500 fell 7%. This led to a short-lived attempt to bounce back but in the end, stocks were just short of another trading halt at 13% down.
San José, CA – On Sunday, March 15, the Federal Reserve bank hit the panic button, dropping interest rates by a full percentage point to near zero. The last time that Fed did this was in December 2008 during the financial crisis. The Federal Reserve also pledged to restart the Quantitative Easing or QE program of longer-term bond buying, first started in November 2008. Trump’s Secretary of the Treasury Mnuchin also vowed to go to congress this coming week to restart emergency financial powers for the federal government in addition to the Fed’s actions.
San José, CA – From the corporate magic of Disneyland in California to the bright lights of Broadway in New York City, to the famous tourist sites of Paris, France and Rome, Italy, lights are literally going out as more and more businesses shut down, as of today, March 15. Meanwhile, in socialist China, where the COVID-19 pandemic initially hit first and hardest, the economy is starting to recover as enterprises start to reopen and more and more people go back to work. One is struck by the irony of Apple, one of the capitalist world’s most valuable corporations, shutting all of its retail stores around the world even as it reopens its stores in China.
Dow down 10%, largest drop since October 1987 crash
San José, CA – U.S. stocks fell almost 10% Thursday, March 12, the day after President Trump called for a travel ban on Europe. This was the largest drop since the stock market crash of October 1987 and put the broader S&P 500 as well as the tech heavy NASDAQ stock market indices in bear market territory as all three major indices are down more than 20%.
San José, CA – U.S. stocks plunged sharply right after the opening bell and ended more than 7% lower as the Dow Jones Industrial Average lost more than 2000 points, March 9. So swift was the fall that within minutes so-called circuit breakers developed after the 1987 stock market crash kicked in, halting trading for 15 minutes. Stocks tried to bounce back but ended the day lower.
Minneapolis, MN – Worldwide, cases of COVID-19 have broken the 100,000 mark. There are more than 400 cases in the United States, a number that is rising every day. That number is likely much higher, but test kits remain in short supply.
San José, CA – On Friday, March 6, the Labor Department reported that 273,000 new jobs were created in January, driving the unemployment down to 3.5%. But despite this strong job report, U.S. stocks fell again; the broadest S&P 500 was down 50 points or about 1.75%. The Dow Jones Industrial Average, which is made up of 30 large companies, fell less than 1% as investors may have felt larger companies are safer havens. But the real flight was to bonds, with the ten-year U.S. Treasury Bond interest rate falling to another record low of 0.75%.
Coronavirus fear strikes back after a day of gains
San José, CA – On Thursday, March 5, the day after U.S. stocks soared on hopes that a Biden presidency would be better for Wall Street, economic worries about the new Coronavirus (COVID-19) drove down stocks again. The Dow Jones Industrial Average fell almost 1000 points, or 3.5%, with other averages falling a bit less. Interest rates on the ten-year U.S. Treasury Bonds fell to another record low of less than 0.92%, showing both fear among U.S. investors and expectations of weaker economic growth.
Minneapolis, MN – Freedom Road Socialist Organization’s Political Secretary Steff Yorek stated today, March 4, “As COVID-19 spreads here in the United States, the potential exists for the corporate health care system to be overwhelmed. American capitalism has developed a health care system that’s poorly equipped to do basic public health. There is no profit in disease prevention.”
San José, CA – On Tuesday, March 3, the U.S. central bank, the Federal Reserve, cut interest rates by one-half of one percent. This emergency action was taken between the regular Fed meetings every six weeks. This was the first time that the Fed had acted between meetings since the financial crisis in October of 2008.
_Trump administration tries to calm financial markets instead of preparing for outbreak _
San José, CA – By Friday, February 28, the U.S. stock markets had their worst week since the financial crisis in 2008. Stocks closed down 15% on average from their record highs just the week before. The Dow Jones Industrial Average had lost 1000 points during the day but ended down 350 points on hopes that the Federal Reserve would cut interest rates at their next meeting in mid-March.
San José, CA – The weeklong fall in stock prices gathered speed on Thursday, February 27, as the Dow Jones Industrial Average fell almost 1200 points or 4.4%. The broader S&P 500 and the tech-heavy NASDAQ stock indices also fell by 4.4%. The total decline in stock prices has now topped 10%, putting the markets into a so-called ‘correction.’ For the S&P 500, the time from hitting a record high on February 19 to entering a correction on February 28 was the fastest on record, taking only six trading days.
Trump tweets while novel Coronavirus infections surge outside China
San José, CA – For a second day in a row, U.S. stock prices fell about 3% Tuesday, February 25. After a 1000-point drop on Monday, the Dow Jones Industrial Average fell almost 900 points, or more than 3%, while the broader S&P 500 fell 3%. Investors fled to buy bonds, pushing their prices up and their interest rate down to all-time record lows, with the ten-year U.S. government bond interest rate falling to 1.35%. Typically falling interest rates show fear of slower economic growth or even a recession ahead.
Dow Jones Industrial Average falls More than 1000 points
San José, CA – U.S. stocks got a reality check on Monday, February 24, with the Dow falling more than 1000 points, or 3.5%. The NASDAQ index, with a heavy representation of technology company stocks, fell a bit more, while the broadest measure of the stock market, the S&P 500 fell a bit less.
New York, NY – For working New Yorkers, taking the subway is an essential part of their day-to-day life. Having a car in New York is incredibly difficult and expensive, which means unless you are rich enough to take a cab to work every day, the subway is basically the only viable option. So for the many New Yorkers with working-class jobs that do not allow them to show up late without risk of getting fired, it is very important that the subway runs smoothly and remains affordable.
_ U.S. stocks end with a total loss for the month of January_
San Jose, CA – U.S. and European stocks fell again on Friday, January 31. With the Dow Jones Industrial Average (DJIA) down more than 600 points, or 2%, U.S. stock markets ended up with a small loss for the whole of January. While losses in European stock markets were not as bad on Friday, they were over 3% for the month. Japanese stocks were also down in January, marking a worldwide stock market decline for the first month of the year.
U.S. Dow Jones Industrial Average gains for the year wiped out
San José, CA – Stock markets around the world fell on Monday, January 27, with U.S. stocks down about 1.5%, the biggest fall since October of last year. The headline Dow Jones Industrial Average (DJIA) fell more than 450 points, wiping out all the gains made earlier in the year. Many overseas markets saw even deeper declines, with European stock off 2.5%.
Milwaukee, WI – Australia has been burning since early October 2019, with 1020 square miles having been burnt already. The country has been in a state of emergency for nearly three full months, with major cities like Sydney receiving a fire danger level of “catastrophic.” People are flocking to the beaches in fear of the flames because they have nowhere else to go. Aboriginal communities like the Yuin in the town of Mogo are being impacted the hardest. 25 people have been confirmed dead as a result of the fires, and estimates suggest that millions of animals have been killed.
