US OPEN: Sharp declines on Wall Street after the opening bell

• Dollar Index reached 100
• US Stocks hit 3 year low
• Tesla (TSLA.US) forced to halt production in Fremont

The U.S. stock market opened lower today as coronavirus concerns and travel restrictions expanded as investors still are not willing to invest in stocks despite government promises for economic aid. Treasury Secretary Steven Mnuchin said the coronavirus could push US jobless rate to 20% without government action.

Due to the bearish bias all major US indices are trading lower today. S&P went down 5.45%, Dow Jones fell 5.17% and NASDAQ dropped 4.5%

The dollar index went up over 4% to 100.4 on Wednesday, a level not seen in 3 years. The investors and businesses seek for liquidity as many companies, stores and plants are closed already and financial markets remain volatile. Also, investors continue to run away from riskier currencies. US dollar made sharp gains against commodity currencies such as AUD, NZD and CAD.
American currency soared also against currencies from emerging markets, making a new all-time high against the Brazilian real, and went up over 5% against the Russian ruble. The dollar is trading  4% higher against the Mexican peso.

 

Also it is worth remembering  that on Sunday Chairman Powell has cancelled this week's planned FOMC meeting, saying that the meeting over the weekend took its place.  The next scheduled FOMC meeting will take place on Apr 28-29. 

After further declines, the S & P500 (US500) found support around the 2400pts level. If the negative sentiment persists, then the index might test 2319pts  level . Source:xStation5

Boeing (BA.US) seeks $60 billion in government aid for aerospace industry hit by coronavirus. The funds will be used to pay suppliers in order to maintain supply chains. Company has already announced that cannot meet its liquidity needs under current market conditions.

Boeing (BA.US) share price plunged over 50% this month, closing at a four-year lows. The price is currently testing a major long term support level at $110.33 per share. Source: xStation5

Tesla (TSLA.US) share prices went down 5.3% in the after hours trading after official tweet from the Alameda County Sheriff which said that the company car factory in Fremont, California cannot be treated as essential business and is allowed to undertake only minimum basic operations.

Tesla (TSLA.US) share price is testing local support level at $397.66. If the price will manage to close below this level then we might experience further declines towards $240.91. Source: xStation 5

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