Markets tumble as worst of COVID-19 “not yet behind us”

Markets fell sharply on Friday.

The S&P 500 tumbled 1.7 percent, the STOXX Europe 600 plunged 3.7 percent and the Nikkei 225 sank 2.7 percent.

Oil prices plunged. West Texas Intermediate crude fell 10.1 percent and Brent fell 9.4 percent.

A strong US jobs report could not overcome market concerns over the COVID-19 outbreak as cases surged over 100,000 globally.

“The worst is not yet behind us because it still feels like we’re in the early spread phase in many countries,” said Craig Erlam, Senior Market Analyst at Oanda. “If we’re seeing policymakers providing stimulus, it suggests that even they believe there could be some significant damage.”

“We disagree with central bank pronouncements that there is room to fight the crisis.” wrote George Saravelos, Deutsche Bank’s head of global head of currency research, in a research note.

Some, though, suggested that strong US economic data should help it avoid recession.

“I still believe we can get through this year without a recession,” said Dallas Fed President Rob Kaplan.