Stocks plummet again as oil gets slammed
NEW YORK — Stocks tumbled more than 5% on Wall Street Wednesday, and the Dow erased virtually all its gains since President Donald Trump’s 2017 inauguration.
Benchmark U.S. crude oil fell 24% and dropped below $21 per barrel for the first time since 2002. Even prices for investments seen as safe during downturns, including gold, fell as the coronavirus outbreak chokes the economy and investors rush to raise cash.
It was just a day before that the Dow surged more than 5% after Trump promised massive aid to the economy, but the number of infections keeps climbing, and the Dow erased all but 0.4% of its gain since Trump’s inauguration. The S&P 500 is down 29.2% from its record set last month, though it’s still up 12.1% since Election Day 2016.
The S&P 500’s slide Wednesday was so sharp that trading was halted for 15 minutes. The index ended the day down 5.2% after earlier being down as much as 9.8%.
At the New York Stock Exchange, all trading will go electronic after the trading floor begins a temporary closure Monday.
“It’s, it’s a very tough situation,” Trump said at a news conference, during which losses for stocks accelerated. “You have to do things. You have to close parts of an economy that six weeks ago were the best they’ve ever been . . . And then one day you have to close it down in order to defeat this enemy.”
“The volatility is going to be here to stay,” said Brian Nick, chief investment strategist at Nuveen. “It’s about the virus and not the economic response.”
Also exacerbating moves, is so many traders are making these trades not from their office.
“I’m calling the Citigroup dealer, who’s on his home Wi-Fi with his kid in the living room,” Tannuzzo said. “That causes gaps” in pricing.
Fannie, Freddie suspend foreclosures
Mortgage buyers Fannie Mae and Freddie Mac said Wednesday that they will suspend all foreclosure sales and evictions of borrowers in single-family homes owned by their companies.
Movie theaters want bailout
Faced with a lengthy shutdown because of the coronavirus, movie theaters are requesting relief from the U.S. government. The National Association of Theater Owners, the trade group that represents most of the industry’s cinemas, said Wednesday that it’s asking for immediate federal help for its chains and its 150,000 employees.
Europe launches relief measure
The European Central Bank is launching a new, expanded program to buy financial assets — up to 750 billion euros worth — in a bid to calm markets roiled by the virus outbreak.