The March low may have been the market bottom, says CEO of the world’s largest money manager

Investing News

Larry Fink, chief executive officer of BlackRock Inc., pauses ahead of a Bloomberg Television interview at the Blackrock Inc. wealth symposium in Zurich, Switzerland, on Thursday, March 7, 2019

Stefan Wermuth | Bloomberg via Getty Images

Larry Fink, co-founder of the world’s biggest money management firm, told CNBC on Thursday the stock market’s coronavirus low last month may have been the pandemic bottom.

“If the disease curve in the developed world continues to decline [and] at the same time we see the curve from governmental support for monetary policy and fiscal policy worldwide increases, we could have seen the bottom,” said the BlackRock chairman and CEO.

The S&P 500 saw its most recent low of 2,191 on March 23, which marked a decline of 35% from its February record. The index, as of Wednesday’s close, was less than 18% off those highs.

Fink, who appeared on “Squawk Box” shortly after BlackRock reported a 23% drop in first-quarter earnings, warned that the stock market underappreciates that the virus has mostly hit the developed world.

“As we start entering summer time [in the U.S.], the southern hemisphere is beginning to have their winter. And are we going to see an acceleration in the disease in other parts of the world? And does that mean close our borders for a longer period of time?” he asked.

Dow futures were pointing to a steady open on Thursday. Terrible economic numbers pushed the Dow Jones Industrial Average down 445 points, or 1.9%, on Wednesday. The S&P 500 fell 2.2% and the Nasdaq lost 1.4%. Weak bank earnings also weighed on the market Wednesday.

Articles You May Like

‘I’m 38 and completely broke’: I earn $50,000 a year. What professional degree will guarantee me six figures?
Autonomous Vehicles: Why 2025 Will Usher in the Self-Driving Car
Snowflake’s stock flies higher as software company’s outlook impresses
5 More Trump Stocks to Trade
Three Mile Island restart could mark a turning point for nuclear energy as Big Tech influence on power industry grows