DJIA Plunged Due to New York Life and Death Lockdown ?
The Dow Jones Industrial Average fell yet again Wednesday Morning after staging short covering rally a day earlier. Just on Monday , the stock market had its worse drop since 2008 amid fears that the growing coronavirus epidemic would push the global economy into recession . Today, in early morning trade , DJIA down 1005 points (4.02%) . The S$P 500 and the NASDAQ were down more than 3.5% .
The U.S. stock market slumped toward a grisly day on Wall Street as the coronavirus threatens to lock down the financial capital of the world. New York state announced military containment measures last night, sending the Dow Jones Industrial Average (DJIA) sharply lower.
The National Guard will oversee a one-mile containment region in the New York suburb of New Rochelle in an effort to slow the spread of Covid-19. The community is home to the largest cluster of U.S. coronavirus cases.
The Federal Reserve and other central banks have been cutting interest rates, and the U.S. and other governments have been rolling out aid and stimulus proposals to help cushion the economic blow of the outbreak.
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The Bank of England was the latest central bank to lower rates, announcing an emergency 0.5-percentage-point cut on Wednesday. It said the cut “will help to support business and consumer confidence at a difficult time, to bolster the cash flows of businesses and households, and to reduce the cost, and to improve the availability, of finance.”
Oil prices, which can reflect economic demand, have also been volatile after Saudi Arabia unexpectedly decided to slash its prices for crude last weekend. The price of Brent, a global benchmark, was down more than 2% Wednesday. It has fallen 27% over the past five trading days.
(With inputs CCN & NPR)