China News Agency, New York, March 11-US stocks plunged on the 11th. The Dow plunged more than 1,400 points into a bear market.
U.S. stocks plunged on the 9th to trigger a fusing, and on the 10th they rebounded strongly, but failed to maintain their gains. On the 11th, the Dow closed at 23553.22 points, a drop of 5.86%; the S & P 500 closed at 2741.38 points, down 4.89%; the Nasdaq Composite Index closed at 7,952.05 points, down 4.7%. On the same day, the three major stock indexes opened lower and rose at noon. However, after the World Health Organization announced that new crown pneumonia constituted a global pandemic, the stock market accelerated its decline, and the decline did not narrow slightly until the close.
Generally, a stock index is considered to have entered a bear market if it has fallen by 20% compared to its latest peak. The New York Times said that compared with the highest point on February 12 this year, the Dow has fallen by 20%, marking the end of the 11-year bull market. The S & P 500 index is 19% below its February 19 high, hovering on the edge of a bear market.
All 30 Dow stocks fell on the day, and only 9 stocks of the S & P 500 rose. The epidemic of new crown pneumonia and lower oil prices are still the two main factors suppressing the stock market. Similar to previous crashes, energy, aviation, tourism and related industries suffered the most losses. Boeing fell 18.15%, Norwegian Cruise Line fell 26.68%, and Nobel Energy fell 20.09%.
The Wall Street Journal quoted Goldman Sachs Group's analysis as saying that low oil prices and low interest rates will affect the profitability of the energy and financial industries, and that future business activities may be much weaker than previously expected. Bloomberg News quoted analysts as saying that it is impossible to predict the duration and spread of the new crown pneumonia epidemic, and the resulting uncertainty will continue to bring turbulence to financial markets. The US Federal Reserve has cut interest rates sharply by 50 basis points, and the market predicts that it may cut interest rates by another 75 basis points this month.
The New York Times said that the performance of the stock market that day indicates that investors believe that the US government has not taken enough measures to deal with the impact of the new crown pneumonia epidemic, whether it is the epidemic itself or the impact of the epidemic on the economy. Analysts pointed out that although US President Trump said he would consider a series of economic stimulus plans, there is no clear information at present and investors are disappointed.
Media reports said that Trump will announce plans to deal with the new crown pneumonia epidemic on the evening of the 11th.
According to the New York Times, as of the afternoon of March 11, more than 1,100 people have been diagnosed with New Coronavirus infection in the United States, and 32 have died. (Finish)