Dow plummets nearly 3,000 points as coronavirus anguish on Wall Street wages on

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Dow plummets nearly 3,000 points as coronavirus anguish on Wall Street wages on
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Dow plummets nearly 3,000 points as coronavirus anguish on Wall Street wages on
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The Dow Jones Industrial Average fell nearly 3,000 points, or 12.94%, at the close of Monday’s trading session as the novel coronavirus outbreak continues to upend business and travel across the world.

The S&P 500 dropped 11.99% and the Nasdaq was down 12.32%.

Monday’s bloodbath was the worst day for stocks since the “Black Friday” crash in 1987. At one point during late intraday trading, the Dow was down more than 3,000 points.

Trading on Wall Street was temporarily halted after markets plunged early into the trading session. The Dow plummeted more than 2,250 points or 9.7% just after trading began. The S&P 500 fell more than 8%, triggering a “circuit-breaker” halt of 15 minutes. Trading resumed just before 10 a.m. but the losses continued.

The major sell-off comes even after the Federal Reserve made a surprise announcement on Sunday that it’s slashing interest rates to near zero and spending $700 billion to buy Treasury and mortgage bonds to help buoy the economy during the coronavirus pandemic.

The intervention did not appear to be enough to quell investors’ worries about the economic impacts of the outbreak on businesses. Local governments including in New York and Los Angeles announced over the weekend they were shuttering businesses such as bars and entertainment venues.

Analysts say investors need more than just Fed action to assuage uncertainty.

“The Federal Reserve’s emergency rate cut to zero, announcement of quantitative easing to the tune of $700 billion and swap arrangements to shore up dollar liquidity in global financial markets, are significant policy moves,” Moody’s Investor Services associate managing director Elena Duggar and vice president Madhavi Bokil said in a joint statement to ABC News. “This decision, taken together with announcements by other central banks, indicates that global monetary authorities will try to do everything in their power to arrest financial stress.”

They continued, “Nevertheless, the ability of central banks to carry the day is quite constrained compared to a decade ago. While rate cuts and QE may go some way to alleviate financial market stress, market participants are also looking for effective communication on other policy measures, including fiscal measures, to offset the health, economic and financial blow that the coronavirus pandemic has dealt.”

You can read the rest of Catherine Thorbecke’s article at ABCnews.com

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