Bloodbath in Wall Street worsened on Feb 27 on news that California is monitoring at least 8,400 people for the coronavirus. About
33 people tested positive for COVID-19 in the state, causing a severe market crash.
Three key U.S. indexes like the S&P 500, the Dow Jones and the Nasdaq lost more than 4% on the day. U.S. stocks, in any case, have been exhibiting steep losses for
six days in a row. Global stocks are bracing for the worst week since 2008, thanks to the virus scare.
In the past week (as of Feb 27, 2020), the key U.S. indexes lost more than 11% and entered into the correction territory. The S&P 500 witnessed the
fastest correction in history. The Dow Jones fell 1,190.95 points on Feb 27 — its worst single-day slump in history.
Global markets lost $1.83 trillion on Feb 27, with the U.S. markets shedding $1.33 trillion, S&P Dow Jones’ Howard Silverblatt said in an email. Over the past six days, global markets wiped out $
6 trillion, with U.S. markets losing $4 trillion.
Bank of America commented that the global economy is on its way for its
weakest year since the 2008 financial crisis due to increased lockdowns, restrictions on global travel and lower manufacturing activity in China. Earlier, Goldman Sachs slashed its outlook for U.S. companies’ earnings growth to zero.
The S&P 500, the Dow Jones and the Nasdaq lost about 9.3%, 10.7% and 7.9% in the past month. Against this backdrop, we highlight a few sector ETFs that stayed steady (gained or lost little) in the coronavirus-infected February.
Upbeat earnings from
Enphase Energy Inc. ( ENPH Quick Quote ENPH - Free Report) and SolarEdge Technologies Inc. SEDG and Tesla’s TSLA optimistic solar plan boosted Invesco Solar ETF ( TAN Quick Quote TAN - Free Report) . The fund has gained 14.3% in the past month. SPDR Kensho Clean Power ETF (has added 4.9% in the past month (read: CNRG Quick Quote CNRG - Free Report) Can Solar ETF Retain its Rally Despite Mixed Earnings?).
Investors should note that a transition toward
100% clean electricity is in process in the United States. China is a major player building a green environment. Almost half of the European Union’s (EU) 28 member states have already reached or are about to touch their 2020 renewable energy targets. All these explain a rally in clean energy ETFs (read: 5 ETF Areas Up At Least 45% in 2019). Online Retail
Online retailing is, in any case, an emerging thing. The coronavirus scare probably favored the industry as any kind of lockdown boosts demand for online shopping, be it groceries or some other essentials. Chinese online retailer JD.com
reported that its online grocery sales grew 215% year over year during a 10-day period between late January and early February. No wonder, ProShares Long Online/Short Stores ETF ( CLIX Quick Quote CLIX - Free Report) has added 3.7% in the past month. Gold Miners
Gold is gaining currently on the safe-haven status. The coronavirus impact seems to be more pronounced than estimated. As a result, gold prices approached a seven-year high. Last week, gold touched $1600 for the
first time since 2013. Bullion ETF SPDR Gold Shares ( GLD Quick Quote GLD - Free Report) has added 3.4% in the past month (read: Gold to Hit $2000 Soon? ETFs to Bet On).
Apart from coronavirus, easing central bank polices and rising expected volatility for 2020 U.S. presidential election has been aiding gold prices. No wonder, mining stocks, which act as leveraged plays of the underlying metal, have also gained. No wonder,
Sprott Gold Miners ETF ( SGDM Quick Quote SGDM - Free Report) has lost only 1.7% in the past month. Still, in the current volatile market, an investor should stick to the bullion itself and limit exposure to mining equities. Healthcare
It is needless to say, such a virus attack will boost demand for vaccines, medicines and equipment. The disease will likely give more business to healthcare providers as well. As a result,China healthcare fund
KraneShares MSCI All China Health Care Index ETF ( KURE Quick Quote KURE - Free Report) has gained 9.6% past month. iShares Genomics Immunology and Healthcare ETF ( IDNA Quick Quote IDNA - Free Report) was up 1.5% over the same time frame (read: Will Biotech ETFs Excel in Election Year Post a Surge in 2019?). Want key ETF info delivered straight to your inbox?
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