Capital Ideas

Investment insights from Capital Group

Categories
World Markets Review
Coronavirus jolts global markets in the first quarter

Global stocks fell sharply amid a severe coronavirus outbreak that brought the world economy to a virtual standstill. A decade-long bull market in U.S. equities came to an end as investors feared the widening pandemic would spark a global recession. Governments around the world responded with unprecedented monetary and fiscal stimulus measures.


Energy stocks experienced the biggest declines as a demand shock and a price war between Saudi Arabia and Russia sent oil prices plummeting. Financial stocks also suffered large losses as some banks suspended dividend payments to conserve capital. All sectors fell, but technology stocks held up the best and health care stocks also fared relatively better, including select drug companies working on potential coronavirus treatments. Growth stocks outpaced value stocks by a wide margin.


U.S. Treasuries rallied as demand soared for perceived safe-haven assets, while corporate bonds declined as several high-profile issuers lost their investment-grade credit ratings.


 



Our latest insights

RELATED INSIGHTS

Hear from the investment team.

Don't miss out

Get the Capital Ideas newsletter in your inbox each week

*REQUIRED

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund prospectuses and summary prospectuses, which can be obtained from a financial professional, and should be read carefully before investing. Similar information about collective investment trusts can be obtained from Capital Group or participants' plan provider or employer.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Use of this website is intended for U.S. residents only.

American Funds Distributors, Inc., member FINRA.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. This information is intended to highlight issues and should not be considered advice, an endorsement or a recommendation.