New York (AFP)

The New York Stock Exchange plunged Thursday, the Dow Jones recording its heaviest fall since the stock market crash of October 1987, on a background of general panic because of the coronavirus pandemic.

The Dow Jones Industrial Average fell 9.99% to 21,200.62 points.

The star Wall Street index had not experienced such a tumble since "Black Monday" on October 19, 1987, where it had unscrewed by more than 22%.

It was the fifth heaviest fall in history for the Dow Jones, according to data compiled by Howard Silverblatt, index specialist at S&P Dow Jones Indices.

The Nasdaq, with a strong technological coloring, fell 9.43% to 7,201.80 points.

The S&P 500 plunged 9.51% to 2,480.64 points, also experiencing its worst session since 1987. The index, which represents the 500 largest companies on Wall Street, officially entered the "bear market", a term which characterizes a fall of more than 20% compared to the last record.

The panic linked to the coronavirus, now considered a global pandemic, brought the New York place down as soon as it opened.

Trade was even interrupted for a quarter of an hour at the very beginning of the session when the S&P 500 lost more than 7%, triggering a "circuit breaker" supposed to allow investors to regain their senses.

Wall Street briefly wiped out part of its losses in mid-session after the Federal Reserve announced an injection of an additional $ 1.5 trillion into the money market.

But the New York Stock Exchange quickly transplanted from the nose, sinking more and more into the red until the close.

"There are many uncertainties about the duration and extent" of the coronavirus pandemic, says Quincy Krosby of Prudential.

"One of the reasons for concern for the market is to know the consequences that this will have for consumer spending," she said.

"And what's really crucial for the market is the impact on corporate earnings," said Krosby, who said the idea of ​​a global recession is now on everyone's lips.

Donald Trump's decision on Wednesday evening to ban travelers from most European countries for 30 days from entering American soil did nothing to reassure investors.

Nor did the proposals to support the U.S. economy mentioned by Trump spark any enthusiasm.

"Brokers and investors wanted more detailed measures," said Krosby.

"The market was absolutely not satisfied and we saw the results today," she continues.

On the bond market, the 10-year rate on the US debt, on the other hand, limited the damage, standing at 0.8534% around 20.20 GMT, against 0.8695% the day before at the close.

© 2020 AFP