Wall Street Traded Halted Again As Coronavirus Crisis Worsens

(Reuters) – S&P 500 firms misplaced greater than $2 trillion in worth within the first couple of minutes of buying and selling on Monday as traders panicked in regards to the mounting harm from the coronavirus pandemic on the worldwide financial system.

Buying and selling on the three essential U.S. inventory indexes was halted for 15 minutes on the open, the third such pause in six days, because the benchmark index <.SPX> plunged 8% and triggered an automated cutout.

A pointy lower in rates of interest by the Federal Reserve to near-zero solely added to the alarm, whereas merchants apprehensive that the pandemic was paralyzing provide chains and squeezing firm funds.

Charge-sensitive monetary shares <.SPSY> plunged 12.6%, main declines among the many main S&P sectors. Vitality shares <.SPNY> tracked a 10% hunch in oil costs, whereas know-how shares <.SPLRCT> additionally shed 10%.

Apple Inc <AAPL.O>, Amazon.com Inc <AMZN.O> and Microsoft Corp <MSFT.O> collectively misplaced almost $300 billion in market worth. Wall Avenue’s concern gauge <.VIX> jumped 13 factors to 70.83.

“The concern issue goes by way of the roof this morning,” mentioned Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“Markets are spooked by the emergency of the central banks stepping in and including billions of {dollars} of liquidity.”

World shares plummeted 8%, oil costs slumped 10% and even safe-haven gold took a success as France and Spain joined Italy in coming into a digital lockdown to comprise the fast-spreading illness. Bars, eating places, theaters and film homes in New York and Los Angeles have been ordered shut.

Underscoring the financial blow of the outbreak, extreme virus containment measures despatched China’s manufacturing facility manufacturing tumbling at its quickest tempo in three a long time.

At 10:14 a.m. ET, the Dow Jones Industrial Common <.DJI> was down 2,326.15 factors, or 10.03%, at 20,859.47, whereas the S&P 500 <.SPX> was down 263.50 factors, or 9.72%, at 2,447.52. The Nasdaq Composite <.IXIC> was down 747.03 factors, or 9.49%, at 7,127.84.

One other 1,000-point dip for the Dow will wipe out your entire Trump-bump, taking the index to ranges seen earlier than the presidency of Donald Trump.

The S&P 500 retail index <.SPXTR> fell 9.3% as Nike Inc <NKE.N>, Lululemon Athletica Inc <LULU.O> and Below Armour Inc <UAA.N> mentioned they’d shut shops in the US and another markets.

The S&P 1500 airways index <.SPCOMAIR> slumped 16.3% as United Airways Holdings Inc’s <UAL.O> March income fell $1.5 billion and the airline warned staff that planes might be flying almost empty into the summer time.

Cruise line operators Carnival Corp <CCL.N> and Royal Caribbean Cruises Ltd <RCL.N> dropped greater than 13%.

Declining points outnumbered advancers almost 28-to-1 on the NYSE and 16-to-1 on the Nasdaq.

The S&P index recorded no new 52-week excessive and 314 new lows, whereas the Nasdaq recorded two new highs and 1,092 new lows.

(Reporting by Sanjana Shivdas in Bengaluru; Further reporting by Thyagaraju Adinarayan Modifying by Sagarika Jaisinghani and Saumyadeb Chakrabarty)

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