The Dow Jones ended trading with a 2,997 points drop to register its worst drop in history due to the deadly contagion. The stock market suffered a late plummet as it fell by 12.94 percent while the S&P 500 index also was severely hit. Overall, the S&P 500 Index has shed 324 points to 2,386 points – a 11.98 percent drop- as the stock market faces its worst day in since the first Black Monday.
Following Donald Trump’s warning of a recession, the market also took a hit as the Dow Jones suffered yet another poor day of trading.
The fall in stock market points comes as Donald Trump warned of a potential recession.
Speaking at a press conference today, Mr Trump said there “may be” a recession in the US.
The US stock market was forced to suspend trading for 15 minutes after stock plummeted on Monday.
The federal reserve also cut interest rates to zero in order to soften the blow.
A $700billion (£570billion) quantitive easing programme has also been devised to help contain the effects of the virus.
Goldman Sachs strategists said: “The coronavirus has created unprecedented financial and societal disruption.”
The US central bank said: “The coronavirus outbreak has harmed communities and disrupted economic activity in many countries.
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“The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses.”
In Europe, there have also been drops in share prices following the spread of the contagion.
Deutsche Bank fell to a low not even seen during the 2008 crash as share prices fell close to four euros.
On Monday morning, the prince in the bank fell to a low of €4.45 surpassing any fall seen during the financial crisis.
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At the time of writing, there have been 181,728 cases reported worldwide.
Within those numbers, there have been 7,131 deaths.
As it stands, China still remains the worst-hit country 3,213 deaths from 80,880 cases.
Italy has seen a sharp rise in cases which forced the government to initiate a nationwide lockdown.
Germany has also closed its border with Austria, France and Switzerland on Monday.
Government officials have also warned against all non-essential travel.
Across the EU, Commission President, Ursula von der Leyen proposed a 30-day travel ban.
She said today: “The less travel, the more we can contain the virus.
“Essential staff such as doctors, nurses, care workers, researchers and experts that help address the coronavirus should continue to be allowed in the EU.
“People transporting goods are exempted too. Why that?”
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