the Us stock market continues to receive blow after blow. One of the key indices, the Dow Jones experienced the worst March 16, the day after “Black Monday” of 1987 and the third collapse in history. From the collapse did not save even the emergency measures the fed: the sharp decline in the base rate to near zero and the quantitative easing program.
At the close of trading losses for the Dow amounted to 2997,10 points or 12.9%. In the moment, in the last minutes of trading, the decline exceeded 3,000 points. S&P 500 fell 12% to 2386,13, reaching the lowest level since December 2018. The Nasdaq Composite ended the day falling by 12.3% to 6904,59. For the high-tech index, this was the worst day in history.
“We can’t argue with the facts, and we are dealing with a much bigger problem than just the economy,” explained CNBC Executive Director of Instinet Frank Kappeler.
That is characteristic, in a steep dive indexes sent another statement of US President Donald trump, who suggested that the epidemic may last until August and did not rule out that the United States still faces a recession.
“the Market did not hear what you wanted to hear. I don’t think he wanted to hear that it will last until July and August, and now the market make their calculations. If it will last until July and August, that means we can have reductions in the second quarter and third quarter, and that means a recession,” — said strategist at BNY Mellon Liz young, live CNBC.
the loss of this Monday downgraded the Dow 31.7% from its historical peak, while the S&P 500 and the Nasdaq were more than 29% below their records of last month. While the Dow Jones fell to its lowest level in 2017. This rapid decline led to the suspension of trading of automation, for example, triggered when the S&P 500 went down by 8%. And it was the third time this week.
the Us company has already been affected by it, asking for help. So American Airlines have requested state aid of $50 billion If this policy was already talking about financial assistance to the citizens. So Senator MITT Romney offered to provide every adult American for $1,000. The proposal was made after the Director of the National economic Council Larry Kudlow stated that the administration “may” to provide targeted cash assistance to American families. According to media reports, Senator Chuck Schumer intends to propose a stimulus package of at least $750 billion.