Wall Street took another hit on Monday as the Dow Jones plunged 2,250 points, or 9 percent, while the S&P 500 fell 8 percent and the Nasdaq 6 percent.
Trading was halted one minute after the opening bell, following a week in which trading was stopped twice due to precipitous falls in the stock market.
The drop on Monday occurred after the Federal Reserve’s Sunday announcement that it would reduce interest rates to near-zero in an attempt to restore some stability to the markets, and amid exacerbated fears the U.S. economy is heading into a recession following the Wuhan coronavirus outbreak.
“If the public stops spending then the economy will go into a recession, and frankly, the market’s steep losses are saying that day isn’t just coming, it is now,” Chris Rupkey, chief financial economist at MUFG Union Bank, wrote on Monday in comments reported by the New York Times.
President Trump has repeatedly pushed the Fed to cut interest rates in response to the economic crisis.
“I want to congratulate the Federal Reserve . . . I think that people in the markets should be very thrilled,” Trump said at a Sunday press conference.
European markets also fell on Monday morning, with bond yields in Italy and Spain, two countries hit hard by the outbreak, as well as in Greece rising sharply. The economic damage in China, where the coronavirus originated, was also expected to rise, the Wall Street Journal reported.