US Dow Plummets Nearly 3,000 Points as Trump States COVID-19 Outbreak Could Last Months
US stocks fell sharply on Monday as the Dow Jones Industrial Average index tumbled nearly 3,000 points despite the Federal Reserve’s latest attempt to ward off concerns of a possible COVID-19-induced economic downturn.
The Dow slid by 2,997.10 points, while the S&P 500 dropped by 324.89 points, declines which placed the indices more than 20% below record highs set in February. The Nasdaq Composite likewise fell by 970.28 points. Monday’s losses marked the continuation of the US’ first bear market in more than a decade.
Stocks plunged nearly 13% moments after US President Donald Trump indicated that the worst of the COVID-19 pandemic could last in the US until July or August. Trump also told reporters that the US economy “may be” heading toward a recession as a result of the COVID-19 pandemic. However, Trump later predicated that “once this virus is gone … you’re going to have a stock market like no one’s ever seen before.”
"The market will take care of itself," Trump later said after being informed of the closing figures.
Trading on the New York Stock Exchange on Monday was also halted for a 15-minute period for the third time in recent weeks. Circuit breakers were triggered moments after the opening bell when the S&P 500 index fell by more than 7%.
Stocks that made the biggest moves during the day’s trading included retailer Gap, which slid more than 24% after the company indicated it was going to slash operating hours in the US and Canada, according to CNBC.
No stranger to the COVID-19 pandemic’s clutches, airlines Delta, United, American Airlines and Alaska Air Group have continued to see losses. Prior to Monday’s closing, Airlines for America, a lobbying group representing several major US airlines, released a letter indicating that its clients urgently need $50 billion in grants and loans in order to get a handle on coronavirus-linked financial damages.
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