Dow Drops 1, Points: Stocks In Meltdown After Temporary Trading Halt
After weeks of turmoil over the economic toll of the coronavirus, U.S. stock indexes entered a bear market, signaling an end to their – year winning streak. Jeenah Moon / Getty Images hide caption
Jeenah Moon / Getty Images
After weeks of turmoil over the economic toll of the coronavirus, U.S. stock indexes entered a bear market, signaling an end to their – year winning streak.
Jeenah Moon / Getty Images
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The stock market extended its relentless, breathtaking drop Thursday – moving deeper into bear territory – with major US indexes sinking as much as 8%. Stocks fell so fast, it triggered a – minute halt in trading for the second time this week.
The Dow Jones Industrial Average plunged more than 1, 1100 points, or 8%. The S&P and the Nasdaq were each down about 7%.
The market tumble came hours after President Trump announced a – day ban on travel from European countries (but not the United Kingdom) to the United States.
Trump said it was an effort to stem the spread of the coronavirus, but the move caused confusion on both sides of the Atlantic and drew skepticism from several health experts . And it was also another blow to airlines, hotels and tourist attractions that have already taken a beating.
Thursday’s stock market drop followed a nearly 6% percent plunge in the Dow on Wednesday, when the blue chip index (entered a bear market , defined as falling % from its peak. The S&P is now also in a bear market, ending an – – year winning streak.
In addition to the travel ban, Trump also announced measures to overcome “temporary economic disruptions” caused by the disease. The proposals include a $ 88 billion program to provide low-interest loans to small businesses affected by the coronavirus.
Congressional Democrats also unveiled a legislative stimulus package aimed at easing the economic damage. Their plan includes expanded unemployment reimbursement for states, extra money for food security for low-income children and federally funded family and sick leave for people affected by the virus.
The coronavirus pandemic has had far-reaching and quickly developing economic impacts.
Thursday morning, Princess Cruises, which has had several ships hit by coronavirus outbreaks, announced it will pause operations of its cruise ships globally for 90 days. The move is in response “to the unpredictable circumstances evolving from the global spread of COVID – , “the company said.
The airline industry has also been hard hit by travel cancelations and travel restrictions. “I would say we’re in the middle of a very significant impact, some would say devastating impact, to the airline industry,” JetBlue CEO Robin Hayes told NPR.
The European Central Bank became the latest to try to offset the effects of the crisis, announcing a series of stimulus measures to help banks and other businesses. But, unlike the Federal Reserve and the Bank of England , the ECB failed to cut interest rates.