Top Things to Know in the Market on friday, March 27th

• 2020-03-27
• Traiding Idea

The Dow Jones jumped 22 percent in the last three days

On Thursday, the US stock market largely ignored reports of rising unemployment and continued its third day of growth following the passage of a $ 2 trillion Senate stimulus bill.

The Dow Jones Industrial Average jumped 1351.62 points or 6.38 percent and closed at 22552.17 points. Thus, the Dow Jones jump in the last three days has reached 22%, the best 3-day jump since the year 1931. S&P 500 climbed 6.24 percent and closed at 2630.30 points. The NASDAQ composite also rose 5.60 percent to close at 7797.54 units. The shares of Facebook, Amazon, Netflix, Apple, and Google's parent company, Alphabet, all jumped more than 4 percent.

The economic consequences of the Corona Virus Outbreak in the world, just like its health effects, are varied in different countries. As the virus is more dangerous to the elderly than others, it can cause more trouble for advanced economies such as the US than other economies.

The US economy, as the world's largest economy, is affected by the Corona Challenge these days. The economy, which until two months ago, all of its variables conveyed a positive outlook. And in the last half-century, its unemployment rate was at its lowest level ( less than 4 percent).

But with the spread of the corona, the situation is changing, and it is projected that the unemployment rate will rise to above 6.5% in the next six months. The face-to-face service industry has a sizeable volume in the economy, With the outbreak of a pandemic, these services will be halted rapidly, and as a result, most jobs in this sector will be lost.

The most recent official news release shows that in an unprecedented event in American history, with the rise of the Corona, 3.3 million Americans have filled out the unemployment insurance form. That number is definitely higher than the actual number of unemployed for two reasons;

First, not everyone who is unemployed is subject to unemployment insurance.
Second, in the financial crisis of the year 2008, only 25% of those who were unemployed applied for unemployment insurance.

The Congress and the Senate have been trying to keep the index high by passing support packages, unprecedented market intervention, and Heavy injection of liquidity.


Oil prices plummeted 7 percent as demand continued to fall

On Thursday, as oil demand declined sharply due to traffic restrictions, oil prices fell sharply after three days of continuous growth. Even the $ 2 trillion stimulus package could not improve the outlook for oil markets.

WTI crude prices fell 7.7 percent or $ 1.89, now trading at $ 22.60. Brent crude also fell $ 1.01 or 3.69 percent and close at $ 26.43.