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Price swings in the U.S. equity market this week were more extreme than they’ve been since Herbert Hoover was president.
The S&P 500 Index moved at least 4% in each of the five days, falling three times and rising twice. The last such stretch of moves of that magnitude occurred in 1929. The index was launched in 1957 and all information prior to that was back tested based on the methodology that was in effect on the launch date.
Investors were whipsawed this week amid growing angst over the coronavirus and an oil price war that sent crude prices plunging. The benchmark index jumped 9.3% on Friday after President Donald Trump declared a national emergency to help combat the virus. That followed a 9.5% drop the previous day, when his travel ban and tepid fiscal measures disappointed traders.
The last time a 9% rout gave way to rally of at least that much the next day was in 1931 during the height of the Great Depression.
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