Global Pandemic Shock
A fast-spreading illness shuts down travel and workplaces, as COVID-19 did in 2020: markets fall sharply within weeks, then central bank and government support drives an uneven recovery.
Dated events
- · S&P 500 falls 7% at the open, triggering a 15-minute market-wide trading halt
Stock prices dropped so fast that trading was automatically halted to prevent a complete collapse. This was the third time in a week that markets had to pause due to extreme selling pressure as the pandemic spread globally. - · Fed pledges bond purchases 'in the amounts needed' and new credit facilities
The U.S. central bank promised to buy as many government bonds and other assets as needed to stabilize the economy. This massive injection of money into the financial system helped stop the panic and began to restore confidence. - · US crude oil futures (WTI) settle below zero for the first time, at -$37.63
The price of crude oil fell below zero, meaning sellers were actually paying buyers to take oil off their hands because storage space was running out and demand had collapsed. This showed how severe the economic shutdown had become. - · Nasdaq closes at a record high and the S&P 500 erases its 2020 losses
After three months of government aid programs and central bank support, the Nasdaq index climbed back to a record high and the S&P 500 erased its losses for the year, surprising many who expected a longer recovery. - · Bitcoin rises above $60,000 for the first time as US stimulus checks go out
Cryptocurrency prices surged as investors with extra money from government relief checks and low interest rates looked for places to invest their cash, pushing Bitcoin to record highs.
Assets named in this scenario · 15
AirbusApple Inc.Bitcoin (BTC)Central Japan RailwayEthereum (ETH)Gold · Gold FuturesInvesco QQQ Trust (Nasdaq-100)iShares 20+ Year Treasury Bond ETFiShares iBoxx $ Investment Grade Corporate Bond ETFLVMH Moët Hennessy - Louis Vuitton, Société EuropéenneMicrosoftRolls-RoyceSafran SASPDR S&P 500 ETF TrustWhitbread
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