U.S. markets appear strong amid COVID-19 concerns

NEW YORK- Stock market’s inactivity observed last week mainly from novel coronavirus concerns was the sharpest underperformance since the 2008 financial crisis. However, market analysts said on Monday that trades are stable all of which could be attributed from strong market structure.

The S&P 500 .SPX plummeted 11.5% the previous week before rebounding on Monday on optimism that central banks will implement interest rate cuts to offset the economic disruptions brought by novel coronavirus 2019.

On Friday session, the market was observed to have turned over a total of 19.35 shares, the second largest amount next to 19.76 billion recorded on Oct. 10, 2008, according to Tabb Group consultancy firm founder Larry Tabb.

Despite high level of market volatility, market participants had been engaging easily, Tabb said.

“I’m not sure you can argue that many people felt prices were reasonable, but generally, things went smoothly,” he said.