1Q US Stock Market Worst in 33 Years... 2Q Optimism Also Not Guaranteed

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. stock market closed the first quarter with experiences at opposite extremes. Although it seems to have escaped the worst situation, advice continues that preparations for crises are necessary in the second quarter as well.

On the 31st (local time), the Dow Jones Industrial Average closed at 21,917.16, down 410.32 points (1.84%), the S&P 500 index fell 42.06 points (1.60%) to 2,584.59, and the tech-heavy Nasdaq index dropped 74.05 points (0.95%) to 7,700.10.

With the close of trading on this day, the first quarter stock market ended, with the Dow down 23.2%, the S&P 500 down 20.0%, and the Nasdaq down 14.2%.

On a quarterly basis, the Dow experienced its worst performance in 33 years since 'Black Monday' in 1987. The S&P 500 showed its largest decline since the global financial crisis in 2008. Even so, it reduced the loss by rebounding sharply by over 20% from its low point.

The U.S. stock market showed extremes in the first quarter. It soared to an all-time high thanks to the U.S.-China Phase One trade agreement and the failure of President Donald Trump's impeachment, but within just one month, it experienced an unprecedented sharp plunge due to the novel coronavirus disease (COVID-19).

Last week, the U.S. stock market showed signs of escaping the worst fear, rising for three consecutive days, supported by the Federal Reserve's active response and the U.S. government's $2.2 trillion stimulus package.

According to a survey conducted by Citigroup targeting institutional investors on this day, 70% of respondents expressed the opinion that the U.S. stock market is more likely to rise 20% than to fall 20%.

However, negative expectations about the market situation in the second quarter are also spreading. There is an opinion that the recent rebound is only a temporary retracement and further declines are possible.

Jeffrey Gundlach, CEO of DoubleLine Capital, known as the 'New Bond King,' warned that the sell-off is not over yet and that the low point seen in March could go even lower. He said, "I would bet that the low will be lower," and warned, "Although the market recently rebounded to the resistance level, confusion will continue."

CEO Gundlach also dismissed expectations that the U.S. economy will succeed in a V-shaped recovery as overly optimistic.

This content was produced with the assistance of AI translation services.