The US stock markets have had another black day because of the corona virus pandemic. Despite the lowering of the key interest rate, the leading index Dow Jones on Wall Street in New York slumped by almost 13 percent, ending at around 20,188 points. It was the sharpest drop since Black Monday in October 1987, and it’s the biggest point loss in Wall Street history.
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Trading on Wall Street was interrupted for 15 minutes right from the start, for the third time within six trading days. The technology index Nasdaq also lost more than twelve percent.
There is great uncertainty among investors about the economic consequences of the corona virus crisis. Traders referred to Donald Trump’s additional stressful statements that the US economy could slide into a recession. He called on all Americans to avoid unnecessary trips and visits to bars and restaurants and to avoid the accumulation of more than ten people in the fight against the spread of the corona virus in the next two weeks.
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At the weekend, the US Federal Reserve surprisingly cut the key interest rate to almost zero percent and announced a package of measures in coordination with other central banks. However, this measure, designed to calm the markets, failed to take effect: analyst Neil Wilson of the “Markets.com” portal spoke of a remarkable move by the Fed, but at the same time emphasized that the global economy is coming to a standstill more and more. The currency keepers also lack the necessary antidote.
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