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Feb. 1, 2020, 3:49 p.m. EST

How the coronavirus outbreak has delivered a shock to stocks, bonds and other assets in January

The number of S&P 500 stocks trading above their 50-day moving average on Friday fell to the lowest level since October

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By Mark DeCambre, MarketWatch

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The S&P 500’s energy sector nears closing in a bear market


Source: FactSet data

The S&P 500 Energy sector /zigman2/quotes/206420077/composite XLE +7.43% is on the brink of closing on Friday in bear-market territory. It would need to close at or below 405.8 and is currently at 404.1.

Airlines

Airline stocks have been flattened. Shares of United Airlines Holdings Inc. /zigman2/quotes/205037281/composite UAL +8.45% slumped 14.9% so far in January. Delta Air Lines Inc.’s stock /zigman2/quotes/200327741/composite DAL +5.50% slid 4.7% in the month to date and American Airlines Group Inc. /zigman2/quotes/209207041/composite AAL +11.18%  shares have fallen more than 6.6%, as both halted flights to China as the coronavirus fears spread.

Bonds take a beating, signal recession

The 10-year Treasury note yields /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y 0.00% hit its lowest level since October after starting the month at 1.92%, it was most recently trading at 1.53% and the differential between the benchmark bond. Bond prices rise as yields fall. On top of that, the 3-month Treasury bill rate /zigman2/quotes/211347046/realtime BX:TMUBMUSD03M +9.84% had briefly inverted, a condition that has tended to be viewed as an accurate predictor of coming recessions. Fixed-income investors, however, have pointed to the fears of coronavirus as the big driver of yields lately.

Check out: Why investors should buy stock-market dips as WHO declares coronavirus a public health emergency — and dump equities as they rebound

’Fear’ on Wall Street rises


Source: FactSet data

The Cboe Volatility Index /zigman2/quotes/210598281/delayed VIX -5.00% , or VIX, which uses S&P 500 options to measure trader expectations for volatility over the coming 30-day period, is on track for its largest monthly jump to start a year on record, based on available data going back to 1990, according to Dow Jones Market Data. The gauge often referred to as a guide to the level of investor fear, was up 39.3% in January and tends to rise as stocks fall.

Read: How the stock market has performed during past viral outbreaks, as coronavirus infects 9,500

/zigman2/quotes/206420077/composite
US : U.S.: NYSE Arca
$ 44.84
+3.10 +7.43%
Volume: 50.20M
June 5, 2020 4:00p
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/zigman2/quotes/205037281/composite
US : U.S.: Nasdaq
$ 42.41
+3.31 +8.45%
Volume: 135.59M
June 5, 2020 4:00p
P/E Ratio
11.50
Dividend Yield
N/A
Market Cap
$11.36 billion
Rev. per Employee
$448,946
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/zigman2/quotes/200327741/composite
US : U.S.: NYSE
$ 34.16
+1.78 +5.50%
Volume: 130.69M
June 5, 2020 4:00p
P/E Ratio
6.34
Dividend Yield
0.00%
Market Cap
$20.65 billion
Rev. per Employee
$499,337
loading...
/zigman2/quotes/209207041/composite
US : U.S.: Nasdaq
$ 18.59
+1.87 +11.18%
Volume: 428.62M
June 5, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$7.07 billion
Rev. per Employee
$345,547
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/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
0.90
0.00 0.00%
Volume: 0.00
June 5, 2020 4:58p
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/zigman2/quotes/211347046/realtime
add Add to watchlist BX:TMUBMUSD03M
BX : Tullett Prebon
0.17
+0.02 +9.84%
Volume: 0.00
June 5, 2020 4:58p
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/zigman2/quotes/210598281/delayed
US : Cboe Indices
24.52
-1.29 -5.00%
Volume: 0.00
June 5, 2020 3:14p
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Mark DeCambre is MarketWatch's markets editor. He is based in New York. Follow him on Twitter @mdecambre.

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