Dow Tumbles Into 10% Correction As Futures Crash, 10Y Yields Plunge To Record Lows On Pandemic Panic

After three days of tentative attempts to BTFD in the overnight session, on Thursday for the first time the puke in futures and global markets was so widespread that “pajama traders” did not pass go and proceeded to sell without prejudice…

… as S&P 500 futures dropped as much as 1.6% and threaten to slide below 3,000 today, while Dow Jones futs were down more than 375 points lower, sending the broad index into correction territory, down 3000 points from its last week highs.

The MSCI All-Country World Index fell for a sixth straight day, with Japan’s Topix and the Stoxx Europe 600 leading declines among major indexes. 
The same risk aversion that was sparked in recent days by a growing pandemic panic, drove global stocks lower on Thursday, increasing their drop in value this week alone to more than $3 trillion…

…  and U.S. Treasuries yields hit record lows just below 1.28% after the Centers for Disease Control and Prevention reported the first U.S. coronavirus case of unknown origin.

… as the coronavirus spread faster outside China than in, with South Korea reporting a whopping 505 new cases, nearly double the 284 on February 25, pushing total cases to 1766 and a 13th coronavirus-related death reported. Overnight President Trump named Vice President Mike Pence to lead the government’s preparations to tackle the virus outbreak and sought to reassure the public that the authorities are ready to handle the situation; at the same time California reported the first US coronavirus case which had been the result of “community transmision”, and whose origin was unknown.

“The fact that, not only is there no sign yet of the pathogen being contained, but rather we now also face the specter of it spreading through the U.S., will continue to weigh on the global macro outlook for the coming months,” Simon Ballard, …
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