Opening the trading session on March 16, the key indexes of Wall Street lost more than 7%, causing the market to stop trading for 15 minutes. DJIA decreased by more than 2,250 points, equivalent to 9.7%. S&P 500 fell 8%, while the Nasdaq Composite lost 6.1%.
This is the third time in the 6 recent sessions that US stocks have had to stop trading. In the US, when the reduction of the index hits 7%, the system will activate the level 1 circuit breaker mechanism. The next two levels are set at 13% and 20%.
At level 2, the downtime is still 15 minutes. But if the reduction reaches level 3, the US stocks will stop the session. After resuming transactions, DJIA continued to plunge, with 11.7%. Currently, this reduction is 10.26%. S&P 500 and Nasdaq Composite lost 8.1% and 9.1% respectively. Investors are concerned that the US Federal Reserve (Fed) 's emergency interest rate lowering the action on March 15 is a sign that a recession is approaching.
The pandemic is crippling the global supply chain and strangling companies' finances. The figures released on 16th March also showed that China's industrial output and retail sales plummeted in the first two months of the year. Asian and European stocks also fell because of the Fed.
Ending the session on 16/3, the index in major markets decreased popularly by 2% to 4%. Australia alone lost nearly 10%. In Europe, the FTSE 100 (UK) is currently down 7.1%, while CAC 40 (France) and DAX (Germany) lost 9.1% and 8.1%.
The world gold prices are also plummeting. Currently, each ounce is only 1,450 USD per ounce, down nearly 80 USD compared to yesterday's session. The current price has also been the lowest since December 2019.
Since it peaked at $ 1,700 early last week, the gold prices have lost more than 200 USD. The price decreased as investors sold off their assets to pay deposits for other assets, which are also plummeting. Last week, gold prices decreased by 8.6%, which has been the strongest one since 1983. "We are in a situation where people are rushing to sell everything they can," concluded Carlo Alberto De Casa, an analyst at ActivTrades.
>> The stock market liquidity improves, stocks prices increase
Source: https://vnexpress.net
