· Dow sinks 2,000 points in worst day since 2008, S&P 500 drops more than 7%
The Dow Jones Industrial Average sank more than 2,000 points on Monday, its worst day since 2008, as fears about the spread of the new coronavirus and an oil price war sent investors scrambling out of stocks.
The Dow dropped 2,013.7 points — 7.79% — as Boeing, Apple, Goldman Sachs and Caterpillar cut the index by at least 100 points each. The Dow ended the day at 23,851.02 and represented its single-worst day since Oct. 15, 2008, when it fell 7.87%.
The S&P 500 plunged 7.6% to 2,746.56 as investors punished financials and energy stocks. Energy names in the S&P 500, including Exxon Mobil, Hess and Marathon Oil, finished the day down more than 20%. Financial stocks ended down more than 10%. The equity benchmark suffered its worst day since Dec. 1 2008.
The Nasdaq Composite fell 7.29% to end the day at 7,950.68.
The massive sell-off triggered a key market circuit breaker minutes after the opening bell. Trading was halted for 15 minutes until reopening at 9:49 a.m. ET. The sharp declines on Monday followed a roller-coaster week that saw the S&P 500 swing up or down more than 2.5% for four days straight.
Investors continued to seek safer assets amid additional fears that the coronavirus will disrupt global supply chains and tip the economy into a recession. The yield on the benchmark 10-year Treasury note dropped below0.5% for the first time ever, while the 30-year rate breached 1%. At one point early Monday, the 10-year slid to 0.318%.
· Japan stocks slip as Wall Street sees worst day since financial crisis
Shares in Asia were lower in Tuesday morning trade after stocks on Wall Street saw their worst day since the 2008 financial crisis overnight.
In Japan, the Nikkei 225 slipped 1.52% in morning trade, adding to its 5.07% decline on Monday. The Topix index also shed 1.61%. The two indexes had declined more than 3% each earlier in the session.
South Korea’s Kospi traded largely flat. Meanwhile, Australia’s S&P/ASX 200 slipped 0.41%, leaving it in bear territory — defined as more than 20% off its 52-week highs.
Overall, the MSCI Asia ex-Japan index traded 0.19% lower.
Investors continue to watch for developments on the global coronavirus spread as well as an oil price war that was triggered after OPEC and its allies failed to reach a deal on production cuts, and Saudi Arabia announced massive discounts to its official selling prices for April.
Reference: CNBC, Reuters
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