Dow dives 2,999 points on fears virus will cause recession
[KSTP-TV]
UPDATE 3:00 p.m.:
The Dow industrials took a 2,999-point nosedive on Monday as fears deepen that the coronavirus outbreak will throw the global economy into recession. Even for a market beset by volatility in recent weeks, the losses were staggering. The 12.9% drop in the Dow was its worst since 1987. The losses accelerated in the last hour of trading as President Donald Trump advised Americans to avoid large gatherings. He also said he sees a chance of recession and promised help to the struggling airline industry. The losses came as huge swaths of the economy come closer to a standstill due to the outbreak as businesses and travel shut down.
UPDATE: Stocks dropped 8% in the first minutes of trading Monday on Wall Street and triggered another temporary halt to trading as huge swaths of the economy come closer to shutting down, from airlines to restaurants.
Emergency actions taken by the Federal Reserve late Sunday to prop up the economy and get financial markets running smoothly again may have raised fears even further, some investors said.
The Fed on Sunday cut its key interest rate to near zero. European markets were also down about 10%. The price of crude oil also dropped about 10%.
Bond prices soared as investors sought safety.
Stocks dropped nearly 10% at the opening of trading Monday on Wall Street, triggering an automatic 15-minute halt, as huge swaths of the economy come closer to shutting down, from airlines to restaurants.
Emergency actions taken by the Federal Reserve late Sunday to prop up the economy and get financial markets running smoothly again may have raised fears even further, some investors said.
The Fed on Sunday cut its key interest rate to near zero. European markets were also down about 10%. The price of crude oil also dropped about 10%.
Bond prices soared as investors sought safety.
This is a breaking news story. KSTP is working to get more details on this story and will post updates as more information becomes available.
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