Wall Street in worst stock rout since ‘87 as traders turn deaf ears to virus response

by   |  VIEW 612

Wall Street in worst stock rout since ‘87 as traders turn deaf ears to virus response

On Monday, the 16th of March 2020, it has been another blood-spattered opening of the week for the US shares, while Wall Street has witnessed its steepest plunge since 1987 with S&P 500 rounding the day off at its lowest level since the December of 2018, as a basket of monetary stimulus alongside combined actions from the Central Banks of G7 nations appeared to have failed to reassured the investors.

On top of that, US President Donald Trump’s Monday’s (March 16th) remark that the US economy should brace for a diabolical downturn up until the second half of the year, had shattered investors’ optimism further.

Surprisingly, a day after Fed had slashed interest rate to near-zero level in an emergency move to battle against the Covid-19 outbreak, benchmark S&P 500 index accountable for roughly 44 per cent of entire trading volume tottered as much as 12 per cent, marking up its largest intra-session plunge since the “Black Monday” in 1987, while trading was stalled for fifteen minutes on Monday (March 16th) following a rumbling wave of sell-off pressures, S&P 500’s third trading halt in less than a week.

Meanwhile, adding that the market had nothing to cling on to but desolation and anguishes, a Chief Global Investment strategist at Charles Schwab, Jeffrey Kleintop said on Monday (March 16th), “It’s a market adrift with nothing to hold on to.

There’s nothing that can really give us a sense of when the full extent of the virus’ impact will be known. ” Citing statistics, in context of a growing number of odds amid coronavirus-led growth concerns alongside Trump’s warning of a likely recession in a near-term outlook, Dow dropped 12.93 per cent to 20,188.52, benchmark S&P 500 index shrugged off 11.98 per cent to 2,386.13, while the tech-heavy Nasdaq Composite was jolted 12.32 per cent lower to 6,904.59.