The main index in the New York Stock Exchange started to plunge on the 16th, despite fears of the spread of the new coronavirus infection (Corona 19) despite the all-round stimulus plan of the Federal Reserve (Fed).

As of 9:55 am (US Eastern Time), the Dow Jones 30 Industry Average index traded at 20,952.91, down 2,232.71 points (9.63%) from the battlefield at the New York Stock Exchange (NYSE).

The Standard & Poor's (S & P) 500 index traded 2,447.63, down 263.39 points (9.72%) from the battlefield, while the Nasdaq index centered on technology stocks fell at 7,118.31, down 756.57 points (9.61%).

In the New York Stock Exchange, 'Circuit Breaker' was again triggered after the opening of the market for 15 minutes. It is the third time this month, following two times last week.

The market has been extremely unstable, with the S & P 500 index growing at a rate of over 11% right after trading resumes.

The market is keen on stimulus measures from major policy authorities such as the Fed and the shock wave of the spread of Corona19.

The Fed opened the Emergency Federal Open Market Committee (FOMC) on the weekend and cut the base rate to 100 basis points (zero) by zero (0 ~ 0.25%). It also announced a QE of $ 700 billion.

Central banks in major developed economies, including the Fed and the European Central Bank (ECB), have agreed to cut dollar swap rates by 25bp to help provide liquidity for the dollar.

This is the level of prescriptions that were released during the past financial crisis.

The Bank of Japan (BOJ) also offered an stimulus package by holding an emergency meeting and significantly increasing the target price of the ETF.

The BOJ just put down the policy rate cut, which is negative (-) 0.1%.

The Fed and central banks in major countries are on an aggressive stimulus basis, but have been unable to calm the stock market anxiety.

There is still concern that the rapid expansion of Corona 19 will limit the effect of expanding liquidity supply.

There are also many concerns that central banks' countermeasures are running out.

France's horror-stricken news followed, with super-strong restaurants shutting down nationwide.

New York City, the financial center, also responded aggressively by allowing restaurants to accept only take-out (packaged food) or delivery orders.

According to Johns Hopkins University, corona19 confirmed around 170,000 people worldwide, and the number of infected people in the United States exceeds 3,700.

Accordingly, the prospect that the economic downturn in major regions such as Europe and the United States would be inevitable in the first half of this year also spread.

The fact that the major economic indicators in the United States were confirmed to deteriorate further exacerbated this anxiety.

The Federal Reserve Bank of New York announced in March that the Empire State index plunged from 12.9 last month to -21.5.

It is the lowest level since 2009. The market's forecast of 3.5 also fell significantly.

Corona19 made the New York regional manufacturer's sentiment worse than expected.

New York stock market experts have made the diagnosis that if the market is to regain stability, the spread of Corona 19 will have to calm down.

Prudential Financial's chief market strategist Quincy Crosby said, "The stimulus package will provide a buffer against the slowdown of the virus's economic activity." "It's moving depending on what you can do."

Stock markets in major European countries have also plunged.

The pan-European index, the Stoxx 600 index, fell 9.74%.

International oil prices also crashed.

The price of Western Texas Crude Oil (WTI) for April was 9.9% lower than the previous trading day, at $ 28.59, while Brent Oil fell 12.26% to $ 29.70.

(yunhap news)