Investors have resumed trading after the stock market suffered a massive dip that tripped a circuit breaker in Monday morning trading.
As of 10:30 a.m. ET, the Dow Jones Industrial Average was down 1,418 points, while the S&P 500 dropped 162 points and the Nasdaq Composite sank 432 points. The market took a 15-minute pause on the heels of a coronavirus-linked market plunge.
Updated (March 9, 2020, 9:45 a.m. ET): Stock Trading Halted After Dow Plunges 1,800 at Market Open Amid Coronavirus Fears
Stock trading has halted for 15 minutes until 9:49 a.m. ET after the Dow Jones Industrial Average tanked more than 1,800 points at the open and the S&P 500 plummeted 208 points. The sell-off triggered a circuit breaker in morning trading to prevent a further plunge.
What We Reported (March 9, 2020, 8:48 a.m. ET): Coronavirus Batters Stocks, Market Set to Open 1,250 Points Down
Mounting fears of a global downturn amid the escalating coronavirus outbreak are battering stocks in Monday premarket trading.
The Dow Jones Industrial Average pointed to losses of more than 1,250 points, or nearly 4.9%, to kick off the week. Futures for the S&P and Nasdaq plunged a respective 145 points, or 4.9%, and 410 points, or 4.8%. The benchmark U.S. 10-year Treasury yield also declined to a new all-time low.
Over the weekend, China, where the virus originated in December, reported a 17% drop in exports and a 4% dip in imports for the months of January and February. That followed the government’s shutdown of factories, stores and offices to help contain the spread of the illness, which has now topped 111,000 cases worldwide and led to nearly 3,900 deaths.
To minimize the blow to the economy, the Federal Reserve last week declared an emergency 0.5% cut in its key lending rate. The cut, which lowers the rate to the range of 1% to 1.25%, is the first of its kind since the 2008 financial crisis. Investors are anticipating the announcement of new stimulus measures at a meeting of the European Central Bank on Thursday.
Hundreds of companies have updated their risk disclosures, and they have advised employees to take safety precautions, such as working remotely from homes or imposing a self-quarantine if they have recently traveled to any of the affected regions. According to the Centers for Disease Control and Prevention, those with low-risk exposure are not restricted from public places as long as they are asymptomatic.
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