Stock Market Continues to Decline
The stock market has been experiencing a sharp decline due to the global impact of the coronavirus outbreak. This week, trading was halted for fifteen minutes after a failsafe mechanism was activated, marking the second occurrence of such an event this month. This was also the first time since the 90s that this measure had to be taken. President Donald Trump recently made a televised address to announce measures to combat the coronavirus, including a travel ban from European countries, albeit with exceptions for US citizens returning home.
Investors reacted anxiously to the travel ban announcement, leading to further drops in stock prices. AxiCorp market strategist Stephen Innes noted, “Traders are selling shares, concerned that the US government’s response to the coronavirus outbreak is inadequate.”
The S&P 500 opened with a 6.5% decrease, the Dow Jones Industrial Average plummeted by 1,600 points (6.9%), and Nasdaq futures saw a 6.8% decline. The S&P index, which is currently in a bear market, is close to a 20% decrease from its peak. If it maintains this status by the end of trading, it will mark the end of the longest bull market in US history. Airlines felt the immediate impact of the travel restrictions, with American Airlines witnessing a 14% drop in its stock value. European airlines like Air France KLM also suffered losses, with a 4% decline in their shares.
