U.S. stocks dive more than 10% in early trading on recession worries

U.S. stocks dive more than 10% in early trading on recession worries

U.S. stocks dive more than 10% in early trading on recession worries

Losses put the Dow Jones Industrial Average down almost 30 percent from its all-time high and the S&P 500 and Nasdaq Composite 26 percent below their records last month. Hong Kong's Hang Seng Index, Japan's Nikkei, London's FTSE, and the Shanghai Exchange all saw losses for the day (London is still trading).

The extent of the action, taken ahead of the Fed's regularly scheduled meeting that had been set for Tuesday and Wednesday, signaled to some investors that the central bank was very concerned about the economy.

After-hours trading in the futures contract for the benchmark S&P 500 stock index reached the limit shortly after trading opened on Sunday evening.

This is the third time that so-called circuit breakers (trading curbs) have tripped in the last few days.

The reputation of precious metals as a safe haven in times of uncertainty was tarnished once again as spot gold prices tumbled more than 7.5 percent before paring back a fair chunk of that loss.

If these markets seize up, it could feed back into the U.S. economy. "Unfortunately, that time has arrived".

The sharp stock market fall has triggered the so-called "circuit breaker" trading halt, which will last for 15 minutes.

Markets are down by similar percentages around the world, including Australia, as huge swaths of the economy come closer to shutting down due to the coronavirus outbreak, from airlines to restaurants.

Bond prices soared as investors sought safety.

The big downside moves in risk assets came in spite of the Fed's massive campaign to stimulate the economy in the face of the coronavirus slowdown and to prevent broader financial contagion.

The Fed said it's "prepared to use its full range of tools to support the flow of credit to households and businesses".

Easing monetary policy action from central banks across the globe highlights that the pandemic's impact is worse than was expected, according to Vinod Nair, head of research at Geojit Financial Services.

The chamber said in a statement accompanying the letter that acting quickly could "mitigate the potentially devastating economic effects" of the virus' spread.

The morning after the Federal Reserve cut its interest rates to near zero at the urging of the President (a move meant to stabilize jittery markets anxious about the economic fallout from the global response to the novel coronavirus pandemic), all of the indexes posted major losses. The U.S. Centers for Disease Control and Prevention has called for the cancellation or postponement of any gathering larger than 50 people for the next eight weeks.

Trading on Wall Street was temporarily halted after markets plunged early into the trading session. "They're taking it as 'get out of the way, look out below, this could be really, really bad'".

The European Securities and Markets Authority (ESMA) said it had lowered the threshold for reporting short-selling to regulators for the next three months as current trading conditions posed a "serious threat" to "fragile" markets.

President Donald Trump acknowledged that stocks have fallen sharply but said that the administration would focus on combating the virus rather than worry about the stock market.

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