https://www.foxbusiness.com/markets/us-markets-march-9-2020Dow plunges over 2,000 points, oil collapses amid price war and coronavirus
The steep stock selloff prompted rare trading halts
By Jonathan GarberFOXBusiness
'Dr. Oz Show' host Dr. Mehmet Oz joins Harris Faulkner to discuss the coronavirus outbreak on 'Outnumbered Overtime.'
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Dr. Oz answers your questions about coronavirus
'Dr. Oz Show' host Dr. Mehmet Oz joins Harris Faulkner to discuss the coronavirus outbreak on 'Outnumbered Overtime.'
U.S. equity markets tumbled Monday after an oil price war broke out between Saudi Arabia and Russia and amid new cases of coronavirus, especially in America.
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Security
Last
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Change %
Stock SymbolI:DJI Stock NameDOW JONES AVERAGES Stock Price23851.02 Stock Change-2,013.76 Change %-7.79%
Stock SymbolSP500 Stock NameS&P 500 Stock Price2746.56 Stock Change-225.81 Change %-7.60%
Stock SymbolI:COMP Stock NameNASDAQ COMPOSITE INDEX Stock Price7950.675746 Stock Change-624.94 Change %-7.29%
The Dow Jones Industrial Average closed over 2,000 points lower, coming back from a point drop of more than 2,150 points, or 8.2 percent, at session lows while the S&P 500 and Nasdaq Composite were lower by 7.9 percent and 7.2 percent, respectively.
DOW'S BIGGEST ONE DAY SWINGS
The drop is now the worst one-day point decline ever for the Dow.
THE VIX EXPLAINED
Monday's sharp selloff, which caused the major averages to be temporarily halted due to volatility, caused the New York Federal Reserve to increase its daily cash injections into the banking system to $150 billion from $100 billion.
FOX Business' Kristina Partsinevelos talks about how the Dow Jones, S&P 500 and Nasdaq all ended down for the third day in a row.
Video
The stock-market's steep slide comes after a production dispute between OPEC members, led by Saudi Arabia, and Russia sent West Texas Intermediate crude oil, the U.S. benchmark, plunging by as much as 33.8 percent, the most since the outbreak of the 1991 Persian Gulf War, to a low of $27.34 a barrel in overnight trading. The energy component finished the day down 24.59 percent at $31.13 a barrel.
Oil majors, including Exxon Mobil, Chevron, and BP, were sharply lower, as were service providers Haliburton and Schlumberger.
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Stock SymbolXOM Stock NameEXXON MOBIL CORPORATION Stock Price41.86 Stock Change-5.83 Change %-12.22%
Stock SymbolCVX Stock NameCHEVRON CORP. Stock Price81.53 Stock Change-13.79 Change %-14.47%
Stock SymbolBP Stock NameBP PLC Stock Price25.28 Stock Change-5.97 Change %-19.10%
Stock SymbolHAL Stock NameHALLIBURTON COMPANY Stock Price8.15 Stock Change-4.92 Change %-37.64%
Stock SymbolSLB Stock NameSCHLUMBERGER LIMITED Stock Price17.31 Stock Change-6.54 Change %-27.42%
Elsewhere, travel-related names remained under pressure after Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, warned Americans with underlying conditions not to take long plane trips or cruises due to the new coronavirus outbreak.
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Stock SymbolAAL Stock NameAMERICAN AIRLINES GROUP INC. Stock Price14.75 Stock Change-1.22 Change %-7.64%
Stock SymbolUAL Stock NameUNITED AIRLINES HLDG. Stock Price46.78 Stock Change-5.32 Change %-10.21%
Stock SymbolDAL Stock NameDELTA AIR LINES INC. Stock Price43.52 Stock Change-2.37 Change %-5.16%
Stock SymbolCCL Stock NameCARNIVAL CORP. Stock Price21.74 Stock Change-5.41 Change %-19.93%
Stock SymbolEXPE Stock NameEXPEDIA GROUP, INC. Stock Price86.30 Stock Change-5.21 Change %-5.69%
Drugmakers working on treatments for COVID-19, including Inovio Pharmaceuticals and BioCryst Pharmaceuticals, opened sharply higher before turning lower.
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Stock SymbolINO Stock NameINOVIO PHARMACEUTICALS Stock Price9.83 Stock Change-4.26 Change %-30.23%
Stock SymbolBCRX Stock NameBIOCRYST PHARM Stock Price3.15 Stock Change-0.96 Change %-23.36%
U.S. Treasurys were the beneficiary of the flight to safety with heavy buying pushing longer-dated yields lower by more than 30 basis points. Overnight, the benchmark 10-year yield fell to a record low of 0.38 percent before bouncing to 0.501 percent at the close. Likewise, the 30-year yield plunged below 1 percent for the first time ever, and was down 27.8 basis points to 0.938 percent.
The drop in Treasury yields accompanies expectations the Federal Reserve will cut rates by 100 basis points at its March 18 meeting, lowering its key interest rate to a range between 0 and 25 basis points.
The expectation of the oversized rate cut is putting pressure on financials, which typically make 50 percent to 75 percent of their net revenue from the spread between the interest paid to depositors and the interest charged to borrowers. Lower rates mean the banks will make less per loan.
J.P. Morgan Chase, Bank of America and Truist were all tumbling. Meanwhile, Wells Fargo was in focus after board chair Betsy Duke resigned.
FOX Business has learned Wall Street's top leaders will meet with President Trump at the White House on Wednesday to discuss the freefall in the markets, coronavirus and potential solutions.
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Stock SymbolJPM Stock NameJP MORGAN CHASE & CO. Stock Price93.44 Stock Change-14.64 Change %-13.55%
Stock SymbolBAC Stock NameBANK OF AMERICA CORP. Stock Price22.01 Stock Change-3.70 Change %-14.39%
Stock SymbolTFC Stock NameTRUIST FINANCIAL Stock Price35.99 Stock Change-4.68 Change %-11.51%
Stock SymbolWFC Stock NameWELLS FARGO & COMPANY Stock Price32.48 Stock Change-4.61 Change %-12.43%
In Europe, Italy’s MIB was down 11.5 percent after the country’s government on Sunday put 16 million people in the northern region of the country on lockdown in an effort to prevent the spread of COVID-19.
Elsewhere, in the region, France's was lower by 8 percent while Germany's DAX and Britain’s FTSE were both off 7.9 percent.
Overnight, Japan’s Nikkei paced the decline in Asia after the country’s government lowered its fourth-quarter gross domestic product to an annualized drop of 7.1 percent, down from 6.3 percent. Taking inflation into account, the drop was 1.8 percent on a seasonally adjusted quarterly basis.
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Meanwhile, China’s trade surplus swung to a $7.1 billion deficit – the first since March 2018 – in the first two months of the year. China’s Shanghai Composite fell 3 percent and Hong Kong’s Hang Seng shed 4.2 percent.
