Beautiful Virgin Islands

Saturday, Mar 14, 2026

Goodbye, Dow 30,000! Hello, Dow 10,000?

Goodbye, Dow 30,000! Hello, Dow 10,000?

At least 129.8 million Americans were ordered to stay home by their respective state governments. No malls. No movies. No bars. No social gatherings of 10 more. Spring break has been cancelled. DisneyWorld is closed. It is probably only a matter of time before all domestic travel is banned, except for emergency situations.
We’re pretty close.

American Airlines last week announced a 75% cut to its operations, while United plans to cut 90% of international services scheduled for April. At this point who is flying other than a doctor? And if not a doctor, where are these people going? Easter Island?

The recession that well-known comedian and HBO show host Bill Maher hoped for and Bloomberg headline writers were firing off incessantly last year for reasons that were both political (Maher) and financial (inverted yield curve) may be coming after all.

If half the country can basically only go to the supermarket, the pharmacy and the doctor’s office over the next two weeks, with skeleton crews at warehouses and manufacturing plants and the only people who can be productive are those who can work from home, then what are we to think when the other half of the country faces the same set of circumstances?

On Friday, Barclays lowered its forecast for the U.S. economy in 2020, going from around 0.8% to -0.6%.

The Federal Reserve and Treasury are working on financing programs that could be worth $4 trillion, Treasury Secretary Steven Mnuchin said Sunday on FOX.

That’s double what National Economic Advisor Larry Kudlow put out there on Friday.

Today’s number from Mnuchin is part of a bipartisan stimulus effort that includes the unlimited checkbook of the Fed to get liquidity and cash to businesses that need it most.

The longer national-shutdown guidelines remain in place, with 8 state governments as of Sunday closing all "non-essential" businesses statewide, the more economic growth will be suppressed.

Short term loans to small businesses will be needed to help companies not only cover payroll so as not to fire workers, but to cover other things, like leases. Who doubts a debt moratorium is right around the corner?

In China’s case, draconian measures took economic growth offline for about two months. If the U.S. did, it would mean a loss of about 16% of economic growth in a full calendar year, analysts from Bretton Woods Research, a boutique, macro investment research firm in New Jersey wrote in a note to clients over the weekend.

Friday’s drop in equities was due to a spate of lockdowns, namely in California and New York. It is only a matter of time before all 50 states follow.

“In the near-term, there’s no reason to hold equities so long as the shutdowns continue and spread,” says Vladimir Signorelli, head of Bretton Woods Research. “Frightening valuations could be in store, such as Dow 14,500 or even 10,000.”

The 12 states with the highest number of COVID-19 illnesses reported as of Friday account for nearly 60% of U.S. GDP, based on 2018 Bureau of Economic Analysis figures.

The pandemic has rolled back all of the stock market gains of the Trump presidency, but few with any market sense would blame government for the market’s reaction to the fast spreading virus.

The global pandemic has also helped crash commodities. Oil was already in trouble thanks to a breakdown in OPEC production talks with Russia two weeks ago. West Texas crude closed at $22.43 a barrel on Friday and hit $20.37 on Wednesday. Worth remembering, oil was $45.90 on March 5, just before the Saudi-Russia sell-off began.

At least $26 trillion in global market capitalization has been lost since February. While that is mostly all speculative capital, it is a sentiment indicator for publicly traded businesses who take on less risk when they see their share price in free fall.

Retirees, insurers, college endowments, all have a lot less money saved today than they did four short weeks ago.

Meanwhile, in the EU, politicians are trying to reassure the public on one hand, while warning that nearly two-thirds of the populous will catch the bug on the other. With mortality rates in Italy raging over 9%, a two-thirds infection rate would bring war death tolls.

For that reason, the market sell-off isn’t over yet.

Futures in Asia point to some significant downside following the U.S. equity market sell-off late Friday.

“We expect the next wave to be continued profit warnings, defaults and a collapse in economic indicators,” says Sebastien Galy, senior macro strategist at Nordea Asset Management in Luxembourg. “Over time the Fed and U.S. Government will win the day. We should increasingly find a firm footing.”
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Weak Growth Signals UK Economy Was Faltering Even Before Middle East Energy Shock
Marks & Spencer Tops UK Fashion Retail Rankings as Most Considered Brand
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
United States Launches Trade Investigation Into Allies Over Forced Labour Practices
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Russia Accuses Britain Over Storm Shadow Strike as London Reaffirms Ukraine’s Right to Self-Defence
Royal Navy to Acquire Twenty Uncrewed Surface Vessels for Autonomous Warfare Testing
Russia Summons British and French Envoys After Ukrainian Storm Shadow Strike on Strategic Facility
Starmer Confirms Britain Will Maintain Sanctions on Russia Despite U.S. Policy Shift
UK Moves to Refine AI Definition in Investment Security Reform
UK Economy Stalls in January as Growth Unexpectedly Falls to Zero
Asian Energy Security Tested as Strait of Hormuz Disruption Threatens Oil Supplies
Iran Sets Three Conditions for Ending Regional War as Diplomatic Efforts Intensify
Tesla Secures Approval to Supply Electricity Directly to Homes Across Britain
Prince William Delivers Tribute to Australia’s Naval Alliance Amid Renewed Royal Spotlight on the Country
UK Foreign Secretary Travels to Saudi Arabia to Reinforce Support for Regional Allies
Putin’s ‘Hidden Hand’ May Be Assisting Iran in Conflict With Trump, UK Defence Secretary Warns
UK Sets April Deadline for Tech Platforms to Strengthen Online Protections for Children
Elon Musk Moves Into Britain’s Energy Market as Tesla Wins Licence to Supply Power
UK Watchdog Warns Fuel Retailers Against Profiteering Amid Iran War Price Surge
Report Claims Iran Used UK Charity Network to Expand Influence
United States and United Kingdom Establish Joint Standards for Counter-Drone Technology
Iran May Be Laying Naval Mines in Strait of Hormuz, UK Warns Amid Escalating Gulf Tensions
US Deploys Bunker-Buster Bombs to UK Airbase as Iran Conflict Intensifies
British Troops in Iraq Intercept Iranian Drones Targeting Coalition Base
Release of Mandelson Files Raises Tensions as UK Seeks Stable Relations With Donald Trump
UK Documents Reveal Starmer Was Warned About Mandelson’s Epstein Links Before Ambassador Appointment
Nearly Five Hundred UK Mortgage Deals Withdrawn in Two Days as Market Volatility Forces Lenders to Reprice
Three Cargo Ships Hit Near Iran as Attacks Spread to Strategic Strait of Hormuz
Why British Police Repeatedly Declined to Investigate Jeffrey Epstein’s UK Links
UK Parliament Ends Hereditary Seats in House of Lords, Closing Chapter on Centuries of Aristocratic Lawmaking
EU and UK Urge Israel to Act Against Rising West Bank Settler Violence Amid Regional Tensions
US Senator John Kennedy Says Keir Starmer Should Not Be Trusted for Military Advice Amid Iran War Debate
UK High Court Rejects Attempt to Revive Terrorism Charge Against Kneecap Rapper
Revolut Secures Full UK Banking Licence After Multi-Year Regulatory Wait
Kentucky’s Bench Boost Powers Wildcats Past LSU in SEC Tournament Opener
British Couple Die After Being Pulled From Water at Australian Beach During Family Visit
British Airways Suspends UK Repatriation Flights as Middle East Travel Disruption Deepens
US Forces Prepare Ordnance at RAF Fairford as Strategic Bombers Deploy for Middle East Operations
Nigel Farage Faces Criticism After Saying Britain Should Stay Out of Iran War
Landmark UK Trial Begins Over Sony’s PlayStation Store Pricing
UK High Court Rejects Bid to Challenge Britain’s Chagos Islands Agreement With Mauritius
Finnish Duo Triumphs in England’s Annual Wife-Carrying Race, Winning a Barrel of Ale
How U.S. and UK National Security Strategies Are Reshaping the Global Business Landscape
Green Party Gains Momentum as Labour Shifts Toward the Political Centre
Royal Navy Destroyer HMS Dragon Sets Sail for Eastern Mediterranean as Regional Tensions Rise
UK Homebuilder Persimmon Warns Iran Conflict Could Dent Property Buyer Confidence
Roman Abramovich Signals Legal Fight if UK Seeks to Seize Chelsea Sale Funds
UK Ready to Back Emergency Oil Reserve Release as Middle East Conflict Pushes Prices Higher
Study of 40,000 Articles Sparks Debate Over Alleged Anti-Muslim Bias in UK Media
×