Stock markets across the globe are bleeding because of the impact of the Coronavirus. Wall Street took a hit as US’s New York Stock Exchange declared that it will halt all trading floors but keep electronic trading open as two people tested positive for Coronavirus at the exchange. Stock markets across the world have on average lost 30% value since last month. Complete Coverage: Coronavirus
Crux of the Matter
Market Meltdown Continues Markets across the world seem to be heading towards a recession after the ripple effect of crashing oil prices and Coronavirus lockdown compelled many nations to take preventive measures like reduction of interest rates. Oil prices have plummeted nearly 20% from $30 at the beginning of this week. With the real economy coming to a halt – shutdown of manufacturing, businesses, shops, etc. – a recession tougher than the 2008-09 Financial Crisis awaits.
% drop in Stock markets across the world (Feb-March 2020)
Wall Street Mimics Dalal Street Circuit Breaker US benchmark index Dow Jones hit circuit breakers on March 9 and March 12, 2020, as the US Federal Reserve announced an unexpected interest rate cut, which leveled the 2008-09 Global Financial Crisis rate. On Wednesday, 18h March 2020, as US index S&P 500 dropped 7%, circuit breakers triggered again and trading was halted. India’s benchmark index SENSEX also triggered circuit breakers on Friday, 13th March 2020, as it dipped nearly 10% in the opening session. Stock markets of both India and the US have taken a hit of nearly 30% since the outbreak exacerbated in February.
Performance of Dow Jones and SENSEX in March, 2020
Curiopedia
The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States. The timing of the Great Depression varied across nations; in most countries, it started in 1929 and lasted until the late 1930s. It was the longest, deepest, and most widespread depression of the 20th century. It started in the United States after a major fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of October 29, 1929, (known as Black Tuesday). Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%. By comparison, worldwide GDP fell by less than 1% from 2008 to 2009 during the Great Recession. More Info
Curated Coverage
NDTV – New York Stock Exchange To Shut Trading Floor Over Coronavirus, Electronic Trade To Continue
Hindustan Times – Stocks nosedive on Wall Street, trigger immediate trading halt
Livemint – Market Live: Erase intra-day losses; Sensex above 29,000
Economic Times – Stock market hit by Coronavirus: Reasons for turmoil, what equity investors should do now
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