Another deep blow is looming on Wall Street: in the evening, the Dow Jones sways considerably. The world’s most noted stock index loses over 2,000 points. Now that he has recovered from the daily low by a few hundred points, he is now aiming for a new one. The dominant color remains red.
Fears of a price war in the oil market, coupled with fears that the expansion of the coronavirus epidemic could trigger a profound recession, are increasingly bringing the US stock market to its knees. A scenario is emerging on the market that can be overwritten with panic: Apparently, market participants use every little recovery for sales.
Losses are followed by further losses
This means that the losses of the previous weeks are only followed by larger losses. The Dow Jones recently lost almost eight percent to 23,821.65 points. It fell to its lowest level since the beginning of 2019. In the past two weeks, the Dow had already lost almost eleven percent, mainly due to the impending consequences of the corona virus for the economy. At the hour (8 p.m. CEST), he is fighting with the 24,000 mark. In the morning it still seemed like it was about a different brand today: those 1,000 points higher at 25,000 points.
Crash takes on historical proportions
The crash on the stock market triggered by the expansion of the corona virus and the reaction of individual countries to the rampant epidemic is taking on ever larger, now historical dimensions. The DAX previously ended the trading day with the largest point loss in its more than 30-year history – and the largest percentage discount since the attacks of September 11, 2001.
It currently seems almost as if the US market is caught in a deadly downward spiral due to concerns about a runaway coronavirus epidemic, a profound recession and a price war in the oil market that is weighing on the US oil industry. Starting from its high on February 12, the Dow Jones has now lost almost 19 percent. A countermovement is overdue. But investors hoped for such a thing in the past few days, when volatility remained high, but there was still no sustained recovery. Market participants’ hopes are currently at the upcoming Fed meeting. You expect a further rate cut.