U.S. sell-offs trigger international market drops
Major indexes in the U.S. stock market pushed closer to bear market territory at the Monday opening. A global price war over oil and the fallout from fears of the coronavirus spooked investors, and selling was heavy across markets and geographies.
Falling stocks in the U.S. market were enough to start a 16-minute trading halt just after the Monday opening bell. The rarely-used trading curb came as the S&P fell 7% from its previous close. The Federal Reserve is looking at its 2008 crisis playbook in an attempt to ease strains on the financial systems. They took an initial step Monday to keep short-term funding markets operating by boosting the size of short-term lending operations, shelving its plans to gradually reduce those offerings.
Global stocks also suffered after crude oil prices plunged as much as 30%, putting prices on pace for their worst losses since the beginning of the 1991 Gulf War. “Every major stock market is getting hammered,” one Wall-Streeter said. The coronavirus, as it continues to spread, has forced many businesses to respond with partial closures, reduced activities, and remote workforces. Layoffs in some industries that have been impacted because of the interruptions in supply chains as a result of the coronavirus in China and elsewhere could also be imminent.
The Trump administration is said to be drafting a number of measures in a bid to curb the economic impact of coronavirus and to limit its spread in the United States, including tax relief for companies facing disruption and temporary expansion of paid sick leave. A cadre of White House and Treasury officials worked through the weekend drafting the package of policies, which would likely be introduced on a step-by-step basis, people familiar with the effort said.
As the Lord Leads, Pray with Us…
- For a clear realization, particularly among Christ-followers, that God is still in control, regardless of the activities of people and diseases.
- For those who are ill, those quarantined, and families that have suffered loss due to the coronavirus.
- That President Trump, his financial advisers, members of the Federal Reserve Board, an others will be wise in the decisions they make during these trying days.
- For Vice President Pence and his team to have functional strategies for containment, treatment, and getting needed supplies to hospitals across the nation
Sources: Wall Street Journal, USA Today, Bloomberg
