As the spread of the new crown pneumonia epidemic in the United States caused widespread concern in the market, the New York stock market fell sharply on the 16th and triggered a 7% fuse. After the resumption of trading, the decline expanded. At the close, the three major stock indexes of the New York stock market plummeted more than 11%.
As of the close of the day, the Dow Jones Industrial Average fell 2997.10 points, a drop of 12.93%. The S & P 500 stock index fell 324.89 points, or a decrease of 11.98%. The Nasdaq Composite Index fell 970.28 points, or 12.32%. The Dow Jones Industrial Average hit its largest one-day drop since "Black Monday" in 1987, and the US stock market triggered the fuse mechanism for the third time since the 9th of this month.
The Chicago Board Options Exchange Volatility Index (also known as the "panic index"), which measures the panic sentiment of stock market investors, hit a high of 83.56 points in the 16th session and closed at 82.69 points, refreshing the index set on November 20, 2008. The previous record high of 80.86 points.
After the Federal Reserve announced an emergency rate cut of 100 basis points on the 15th and restarted quantitative easing measures, the market did not respond positively.
In this regard, Frank Capelleri, managing director of Nomura Jixun, said that the market has not stopped falling, and the new crown pneumonia epidemic and the historic Federal Reserve interest rate cut will continue to be the focus of the media. "We are dealing with problems that are far greater than the economy itself.
According to reports, the US aviation industry is seeking more than $ 50 billion in assistance from the government, including direct assistance and loan guarantees, to alleviate the impact of the new crown pneumonia epidemic on the aviation industry.
US President Trump said on the 16th that the US government is willing to provide the greatest support to the aviation industry. The decline in airline stock prices has narrowed.
Trump also said that the worst of the epidemic could last until August and that the U.S. economy could fall into recession. His statement further dampened market sentiment, and the market accelerated its decline in late trading.
The data released by the Federal Reserve Bank of New York on the 16th showed that the manufacturing prosperity index of New York State in March was -21.5, which was significantly lower than market expectations of 4.8 and February's 12.9, setting a record low for the index, indicating that the outbreak has begun to affect the US economy Bring impact.
Bank of America Global Research said on the 16th that the market is now experiencing a short-term confidence shock, not a long-term confidence shock during the financial crisis. The global central banks are expected to implement a more aggressive easing monetary policy, and governments will also introduce relevant fiscal policy measures.
Bank of America Global Research said that the U.S. stock market fell from the peak of the bull market to the bear market in just 21 days. decline. At present, large-scale fiscal stimulus measures are very important so that the situation can be reversed.
New crown pneumonia epidemic plunges again in U.S. stocks
2020 03/17