Shanghai reported China securities net news new pneumonia epidemic caused by the panic mood is still spreading, the United States stock market on Wednesday after a large opening shock lower, then the decline triggered the fourth circuit breaker this month, that is, the fifth circuit breaker in history.
The dow and the s&p 500 fell 7.82% and 7.01%, respectively, triggering a first-tier circuit breaker that halted trading for 15 minutes.
U.S. stocks continued to fall after trading resumed, with the dow down more than 2,300 points at one point and nasdaq down nearly 650 points. By the close, the dow was down more than 6% at 19,9892, the nasdaq was down 4.7% at 6,989.84 and the s&p 500 was down 5.18% at 2,398.1.
Individual stocks, airline shares suffered a slump. United airlines closed down 30.29 percent, delta airlines fell 25.99 percent after falling nearly 40 percent at one point, and American airlines fell 25.22 percent.
Iata chief executive officer alexandre DE juniac called for immediate and extraordinary measures to safeguard the growth of the global aviation industry. He said the situation was rapidly deteriorating and governments could no longer afford to take a wait-and-see approach.
Energy stocks fell as oil prices plunged. Chevron lost more than 22%, exxon mobil lost more than 10% and conocophillips lost 13.64%.
Technology stocks also fell sharply. Tesla fell more than 16%, twitter nearly 10% and apple 2.45%. Among chip stocks, western digital fell 14.27%, while micron fell nearly 7%
Major European benchmarks also fell. Britain's ftse 100 fell 3.74 percent, Germany's DAX fell around 5.56 percent and France's CAC 40 fell nearly 6 percent.
MSCI conducted a reverse stress test of the recent market declines, citing four scenarios that could explain recent market repricing: market panic, a mild economic slowdown, a prolonged recession and pure fundamentals. MSCI found that while many unknowns remain, the market has factored in the "significant economic downturn and the potential for prices to recover as the risk premium fades".
Oil prices plunged Monday on expectations of weak demand and the expiry of an existing agreement to cut output at the end of the month.
Light crude for April delivery ended the day down $6.58, or 24.42%, at $20.37 a barrel on the New York stock exchange. In London, brent crude for may delivery fell $3.85, or 13.4%, to $24.88 a barrel.
The dollar index, which tracks the greenback against a basket of currencies, rose sharply yesterday to break through the 100-point mark as volatility in financial markets boosted demand for the greenback. The dollar index, which measures the greenback against six major currencies, rose 1.60 percent to end the day at 101.1610.