Stock Market Plunges 10%, Triggering Circuit Breaker Over Coronavirus Fears
The Dow suffers its worst single-day percentage drop since 1987 as coronavirus concerns trigger a second market halt this week. Both the Dow and S&P 500 officially enter bear market territory.
Stocks suffer a second straight day of massive losses as the Dow plummets more than 2,300 points, marking a 10% decline. The S&P 500 drops 8% just minutes after the opening bell, triggering a market-wide trading halt. This marks the second time this week that circuit breakers activate to pause trading, a mechanism not used since 1997.
Investors show deep concern over the growing economic impact of the coronavirus, with analysts noting the crisis reaches Main Street more significantly each day. The Federal Reserve Bank of New York attempts to stabilize the situation by injecting short-term funding into lenders, but the relief is only temporary as markets quickly resume their downward trajectory.
The steep decline pushes both the Dow and the S&P 500 into a bear market, ending the record-long bull run that began in 2009. Furthermore, the market plunge indicates that investors find little comfort in the president's proposed economic relief plans, leaving Wall Street bracing for continued financial turbulence.