Immediately after the opening of trading, the leading US indexes fell by 7% due to fears of the consequences of the coronavirus and falling oil prices. After resuming work, the drop continued.
Trading on the New York stock exchange on Monday, March 9, was suspended for 15 minutes shortly after opening due to the collapse of stock prices. This is the most serious drop in the last ten years, according to investors who have already called this day “Black Monday.” The S&P 500 index of major American companies fell 7% immediately. The Dow Jones dropped 7.2%, while the NASDAQ technology index lost more than 7%.
US markets picked up the downward trend, which was exacerbated on Monday in Asian and European trading after a sharp drop in oil prices. The oil giants ‘ shares suffered the most. In the US, Chevron and Exxon Mobil lost almost 10% at the opening. The energy index fell by 20%. Such a measure as suspension of trading was introduced on the New York stock exchange during the turbulence of the financial crisis of 2008-2009.
To fears of serious consequences of the coronavirus for economic growth, negative forecasts for oil prices were added on Monday because of the conflict between OPEC and Russia. Monday saw the sharpest drop in oil prices since the Gulf war.
The International Monetary Fund has called for international coordination to counter the economic impact of the coronavirus. The Federal Reserve Bank of New York announced an increase in daily cash injections to financial markets by $ 50-150 billion to increase market liquidity.