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Weekly economic review & outlook
Coronavirus fears set in

MAR. 02, 2020

You Need to Know

Week in review

Coronavirus fears cause a record stock market dive

The S&P 500 stock index plunged into correction territory at record speed in response to increasing economic growth concerns in the wake of the coronavirus.

New home sales soar in January

New home sales jumped to an expansion high as homebuyers responded to growing demand from low mortgage rates, a solid job market, and strong household formations.

Week Ahead

Forecasts

ISM surveys expected to edge higher

Both the ISM manufacturing and nonmanufacturing indexes are expected to edge higher for February – before the impacts from the coronavirus are felt.

Employment growth expected to decelerate

Employment growth is expected to slow from January’s unsustainably rapid pace.

The increasing spread of coronavirus infections outside of China sent equity markets across the world into a tailspin as investors grappled with the potential negative impacts for the global economy. The market movements were extreme by any measure with the S&P 500 stock index down by more than 12 percent for the week — the worst weekly performance of the expansion. The index entered correction territory (a 10 percent decline from its most recent high) in the shortest time span in history, only six trading days after the market peaked on February 19.

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