New York (AFP)

Wall Street took one of the worst sessions in its history on Monday as panic over the inexorable advance of the coronavirus pandemic outweighed the massive efforts by the US central bank to try to reassure the markets.

Its flagship index, the Dow Jones Industrial Average, collapsed by 12.93%, its heaviest drop since Black Monday in October 1987. At 20,188.52 points, it fell to its lowest level since February 2017.

The highly technological Nasdaq fell 12.32% to 6,904.59 points while the broad S&P 500 index plunged 11.98% to 2,386.13 points.

The panic spread to brokers from the start of the session, a fall of 7% in the S&P 500 automatically triggering a suspension of trading for a quarter of an hour, supposed to allow market players to regain their senses.

The indices then regained some ground. But they plunged again at the very end of the session, while the White House gave a press conference on the efforts made by the American administration to fight against the coronavirus.

Donald Trump notably called on the Americans to avoid any gathering of more than 10 people in an attempt to contain the epidemic, which he said could end in July or August in the United States.

The explosion of the number of cases of contaminations in the world and the drastic containment measures imposed almost everywhere panic investors, who fear a global economic recession.

The US Federal Reserve has stepped up to the plate to try to reassure by announcing on Sunday evening as a matter of urgency a further drop in its key rate to almost zero. The other major central banks have also taken steps to prevent financial trade from seizing up.

The Fed also announced during the session Monday that it would offer an additional $ 500 billion in the money market, in addition to the $ 700 billion asset buy-back program already unveiled the day before.

"The financial markets panic completely despite the massive and coordinated response from central banks," observes Quincy Krosby, head of market strategy for Prudential Financial.

"It is now clear that the Fed is ready to do whatever it takes. But market players are now waiting for budgetary measures that will ease the shock for consumers and businesses," said the specialist.

"The number one problem now is how to contain the virus," she said. "Then you have to know what its consequences are for the economy, the consumer, and corporate spending," added the specialist. "The markets are responding to this pyramid of uncertainties."

Market anxiety was heightened on Monday by the announcement in March of a drop in manufacturing activity in the New York region to its lowest level since the financial crisis of 2009, the first quantified signal of the impact of the coronavirus on the sector.

© 2020 AFP