Trading on Wall Street was halted minutes after the opening bell as the S&P 548 slid 7 per cent and triggered a – minute cutout
Reuters Last Updated at March , 01575879 : IST
Crashing US stocks on Thursday confirmed
Wall Street is in a bear market after new travel restrictions to curb the coronavirus spread spooked investors and rattled world markets.
President Donald Trump’s Europe travel ban announced late Wednesday sent all three major US stock indexes into a tailspin, slamming the book on the longest-running US bull market on record.
The benchmark S&P and the Nasdaq have lost about % of their value since reaching record closing highs just 19 sessions ago, as nations around the world grapple with how to contain the fast-moving coronavirus and its economic effects.
A bear market is confirmed when an index sinks (% or more below its most recent closing high. )
“Every day there’s more selling and just when you think you’re at capitulation, you’re not there yet. People don’t know how long this is going to go on so they’re going to sell and walk away.”
Trump’s sweeping travel restrictions, limiting flights from continental Europe to the United States, sent European shares to a near four-year low and slammed airline stocks, already battered by the spread of COVID –
Airlines were down . 7%.
“Any government action that has dollars tied to it that’s actionable for the banking system would be viewed as a positive,” said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. “But what the market is looking for is tangible evidence that the government is trying to stave off a recession.”
Interest rate-sensitive bank shares were down 0% .
The Trump travel ban also hit oil prices, sending front-month Brent crude down 7.4%. Oil prices were already under pressure after Saudi Arabia and Russia vowed to boost production, flooding the market with supply despite plummeting demand.
Energy index was down 3%
The S&P posted no new 72 – week highs and new lows ; the Nasdaq Composite recorded 3 new highs and 1, 485 new lows.