Mar 23, 2021 AT 09:15PM
US stocks closed sharply lower as the sell-off extended in late afternoon led by small-cap stocks with Russell index tumbling by 3.6% as virus cases and new restrictions in Germany signal the global reopening will be delayed. Travel and retail stocks sold off heavily with Carnival and Norwegian cruise lines slumped >7% each. American Airlines and United Airlines also dropped more than 6%. Energy stocks were also sold off as Crude crashed on demand fears (European lockdowns) and supply anxiety (floating storage unwinds) which slammed WTI below $58 to six-week lows (and below its 50DMA). Also, Oil time spreads are now flipped into contango. Elsewhere, the dollar strengthened across g8 peers with Antipodeans the worst performer – kiwi$ fell almost 2% while the 10-year US Treasury yield slid for a second day after Powell played down the risk that economic growth would spur unwanted inflation. Meanwhile, Powell also stressed that when it’s time to taper, the CB will communicate carefully and move slowly. Cryptos were unchanged today holding losses for the week while Commodities were all sold off as the dollar rallied but copper and crude got hit worst and Silver fell to $25 handle.
