Daily Management Review

US indices fall after coronavirus pandemic announced


The announcement of the coronavirus pandemic pulled down the US stock market. Major stock indices fell by a few percent.

The Dow Jones index fell more than 500 points after the World Health Organization (WHO) recognized the new coronavirus as a pandemic. Initially, it amounted to 24,174 points, but fell by 2.16% to 23,651 in the next two hours. In total, from the beginning of the trading day on March 11, the Dow Jones lost 1242 points (minus 5%).

The S&P 500 index also showed a decrease, which over the same time fell from 2796 to 2749 points, also losing more than 1%. The fall since the start of trading was 4.56%. The Nasdaq index fell by 2.32% from 8122.33 to 7934 points. Over the day, the index fell by 4.93%.

World trading floors began the week with a collapse that occurred after the fall in oil prices. On Monday, March 9, the price of Brent oil futures fell by 30%immediately after the opening of trading - from $ 45 to $ 31.02 per barrel. Bloomberg wrote that this fall was the biggest since the Gulf War in 1991. At the beginning of the trading day, trading had to be suspended for 15 minutes due to a sharp collapse of the main indices. In the first four minutes of trading, the S&P 500 fell by 7%, the Dow Jones – by 7.29%, and the Nasdaq – by 6.86%. On Tuesday, the US stock market won back part of the losses: the main indexes recovered about two-thirds of what they lost.

source: bloomberg.com