Coronavirus Rises Recession Fears: What It Means For Banks
Zacks Investment Research | Mar 12, 2020 11:49PM ET
Coronavirus and concerns surrounding its impact on the global economy resulted in the end of the 11-year bull run on Thursday for all the three major U.S. indexes. This followed the World Health Organization’s declaration of the coronavirus as pandemic.
On Thursday, the S&P 500, Nasdaq and the Dow Jones plunged to their historic lows, with both Dow Jones and S&P 500 witnessing the biggest drop in more than three decades. Though the Federal Reserve unveiled measures including injecting KBE have plunged more than 40%. Further, major banks including JPMorgan (NYSE:JPM) , Bank of America (NYSE:BAC) , Wells Fargo (NYSE:C) and Citigroup (NYSE:C) are trading at a significant discount. Year to date, shares of these behemoths have tumbled more than 35%, with Wells Fargo being the worst performer.
Year to Date Price Performance
With shares of all banks — big and small — having taken a huge beating, this provides investors with good entry points for fundamentally strong banks. Still, they should check out individual company fundamentals and keep an eye on near-term matters before taking any decision.
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