China News Agency, New York, March 12th. The three major U.S. stock market indexes plunged again on the 12th to trigger a fuse. The US stock market has melted three times so far, twice this week.
On the day, the three major stock indexes fell sharply before the market, and all of them triggered a fuse within 10 minutes after the market opened. In the end, the Dow closed at 21,200.62 points, a drop of 9.99%; the S & P 500 closed at 2,480.64 points, a drop of 9.51%; the Nasdaq Composite Index closed at 7,201.80 points, a drop of 9.43%. The Dow plunged more than 2,300 points on the day, returning to June 2017 levels; the S & P 500 and Nasdaq entered a bear market. At this point all three major US stock indexes fell into a bear market.
The fusing mechanism is also known as the automatic suspension mechanism. When the volatility of the stock index reaches the specified fusing point, the exchange suspends trading to control risks. After the "Black Monday" in 1987, the United States set up a fusing mechanism, which was divided into three levels: 7%, 13%, and 20%. The first meltdown of US stocks occurred in 1997, and the second was on March 9 this year.
All 30 Dow stocks fell sharply on the day, and only one stock in the S & P 500 rose slightly by 0.76%. The worst losses are still in the tourism, energy, transportation and other industries. Norwegian Cruise Line and Royal Caribbean Cruise Line fell 35.8% and 31.78%, Marathon Oil Co. fell 27.01%, and Boeing Co. fell 18.11%.
CNN said it is difficult to predict how long the new bear market will last. The report counts a bear market in the history of US stocks, with an average duration of 21 months. The longest bear market occurred in March 1937 and lasted 62 months; the shortest was July 1990, which lasted less than 3 months. The round of bull markets that just ended began in 2009 and has lasted 11 years. It is the longest bull market in American history.
The Wall Street Journal said that despite the Fed's announcement that it would inject at least $ 1.5 trillion in liquidity into the market that day, funds still fled the stock market out of fear of the global economic outlook. It is reported that the Federal Reserve Bank of New York announced that it will conduct a $ 500 billion 3-month repurchase operation in the afternoon of the 12th, and on the 13th, it will also carry out a $ 500 billion 3-month repurchase operation and a $ 500 billion 1-month repurchase operation . After the news was issued, the Dow once rose sharply by only a thousand points, but then fell again.
The New York Times said that investors have been expecting Washington to launch a plan to support the economy, but waiting for US President Trump to announce a 30-day suspension of European countries ’travel to the United States, which has greatly increased market anxiety. The report quoted analysts as saying that the securities market will remain vulnerable until the leadership provides specific plans to control the new crown pneumonia epidemic and support economic development. (Finish)