Don’t miss the latest developments in business and finance.

US Market tumbles as coronavirus fears

Image
Capital Market
Last Updated : Mar 19 2020 | 9:04 AM IST
The US equity market finished session lower in volatile trade on Wednesday, 18 March 2020, as investors continue to worry about the fallout from the coronavirus pandemic after the White House acknowledge the rising likelihood that the pandemic will cause a recession. President Trump announced new emergency steps to deal with the coronavirus pandemic, including suspending foreclosures and evictions until the end of April. Meanwhile, falling oil prices and a surging U.S. dollar weighed on equities.

At closing bell, the Dow Jones Industrial Average declined 1,338.46 points, or 6.3%, to 19,898.92, while the S&P 500 index fell 131.09 points, or 5.18%, to 2,398.10. The Nasdaq Composite Index slid 344.94 points, or 4.7%, to 6,989.84

The selloff hit across asset classes on Wednesday, as investor sentiment continued to deteriorate despite the Trump administration proposed a $1 trillion economic rescue package to combat the fallout from the coronavirus pandemic that was announced Tuesday.

Trading was briefly halted during the early afternoon after the S&P fell 7%, thereby triggering the New York Stock Exchange's circuit breaker.

After the market closed for the day, the New York Stock Exchange announced it will temporarily shift to all-electronic trading starting Monday. "The decision to temporarily close the trading floors represents a precautionary step to protect the health and well-being of employees and the floor community in response to COVID-19.

Total confirmed infections from the virus topped 200,000 worldwide, and more than 8,000 people have died, as of Wednesday. The virus continues to hammer large sectors of the economy, from small businesses to airlines. On Wednesday, Ford and General Motors suspended production at their U.S. facilities to help slow the spread of the virus. The shutdown is scheduled to continue at least through the end of March.

In the commodity sector, crude oil is reeling from the twin forces of historic amounts of supply and an unprecedented demand shock. Crude is currently trading down almost 19% on the day at just $22 per barrel. The price of oil has dropped more than 60% so far this year as the world economy has virtually ground to a halt in response to the coronavirus and as major producers Saudi Arabia and Russia have entered a price war.

Save-haven gold extended its decline amid the scramble for cash. The gold price shed 2% and dove below $1,500.

Powered by Capital Market - Live News

Also Read

First Published: Mar 19 2020 | 7:40 AM IST

Next Story