On Tuesday morning U.S. stock market seems to be in green, as US stock futures surged after a series of choppy trade in previous sessions, the markets are attempting to stage a modest rebound a day after the Dow Jones Industrial Average logged a 3,000-point loss amid the fears that the coronavirus pandemic could last longer, than expected in the United States.
The Dow Jones Industrial Average slumped 2,997.10 points, or 12.9%, to settle at 20,188.52, while S&P 500 index tilted 324.89 points, or 12%, to end the session on Monday at 2,386.13, and the Nasdaq Composite Index shed 970.28 points, or 12.3%, to finish at 6,904.59, marking the worst day in the history for the technology heavy index.
How much pressure was mounted on US Stock Market under the coronavirus? That it’s the third consecutive time in the month on Monday that initial circuit breakers temporarily halted trading for 15 minutes at one point.
Dow Jones Index was off 32% from its Feb 12 record closing high, while the S&P 500 index and Nasdaq are off by about 30 percent from their Feb. 19 peaks.
Why US Stock market is Chopping?
The lock down and shut down of business activities in response to the coronavirus pandemic, everything from cities to organizations to supply chains are shutting down, all factors are leaving investors overwhelmed by rapid-fire updates on the coronavirus. That also adds fuel to fire with a Monday warning by the President Donald Trump of a possible recession, due to the virus outbreak and the possibility that the viral outbreak could last deep into the summer.
All these matters deepening the anxieties have come even after the Federal Reserve’s emergency on Sunday interest-rate cut, which has done little to spark any buying on the Wall Street.
Coronavirus effects on economic activity
The demoralized mood on Wall Street has been attributed to the investors’ unfulfilled desire, for more relief for individuals and the small businesses and even some major corporations have been beaten by the epidemic.
The airlines of U.S are seeking $50 billion in terms of financial assistance after the virus outbreak from government, reported by Wall Street Journal, that would be three times the size of the U.S Airline industry’s bailout after the Sept. 11 attacks.