US stocks plunged over 2,000 points on Thursday after President Donald Trump’s address to the nation on Wednesday night failed to calm investors’ concerns about the economic fallout from the coronavirus outbreak, Business Insider reports.
Trump’s remarks about the coronavirus outbreak — which lacked clarity about economic stimulus measures — sparked confusion and spurred overnight futures losses that carried into Thursday trading. Trump also announced a 30-day European travel ban, adding to trepidation as airline stocks tumbled.
The S&P 500 and the tech-heavy Nasdaq are in bear-market territory, down more than 20% from recent highs. The Dow Jones industrial average fell further into bear territory after closing below the threshold on Wednesday.
Selling was so pronounced in the opening minutes that a marketwide circuit breaker was enacted, halting trading for 15 minutes.
All three major US indexes fell roughly 7% in afternoon trading. The S&P 500 and the tech-heavy Nasdaq opened more than 20% below their recent highs, putting them in bear-market territory.
Losses pared in the afternoon after the Federal Reserve announced a stimulative bond-purchase plan.