US stocks tumbled for a second consecutive trading session, with the Dow Industrials falling more than 3%. Stocks started the session in the black, but prices quickly turned lower as concerns over the spread of the coronavirus weighed on a riskier asset. The 10-year Treasury yield continued to tumble lower falling to a 100-year low. The interest rate curve as the short end of the treasury curve is now inverted pointing to a potential recession. All sectors in the S&P 500 index were lower, led down by Energy which dropped nearly 5% and materials which were down 4.5%. Consumer confidence rose less than expected, while housing prices continued to rise. The decline in treasury yields will pull down mortgage rates, potentially setting up a surge in home sales. Bob Iger will step down as Disney CEO and assume the role of executive chairman.
The VIX Continues to Surge
The VIX volatility index surged another 11% on Tuesday as riskier assets tumbled. The VIX hit a 12-month high hitting 30%.
Consumer Confidence Rise Less than Expected
US Consumer confidence rose less than expected in February according to The Conference Board. The consumer confidence index came in at 130.7, up from 130.4 in January. Expectations has been for confidence to rise to 132.6. The Conference Board’s present situation index, which accounts for consumers’ assessment of the current business and labor environment, dropped to 165.1 from 173.9 in January.
Home Prices Rise
Home prices rose 3.8% annually according to the S&P CoreLogic Case-Shiller National Home Price Index. That is up from the 3.5% gain in November. The 10-city composite increased 2.4% annually, up from 2% in the previous month. The 20-city composite rose 2.9%, up from 2.5% in the previous month.
Twelve of the 20 cities saw bigger price increases in the year ending December compared with November’s annual read. Every city in the 20-city composite saw a gain in home values. Chicago and New York saw the smallest annual gains at just 1% for each.
Disney Will Get a New CEO
Bob Iger announced that he will step down as Disney CEO and assume the role of executive chairman. Bob Chapek, who most recently served as chairman of Disney parks, experiences and products, will assume the role of CEO, effective immediately, Disney announced.
This article was originally posted on FX Empire
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