Stocks are cratering as markets close on Monday, with the Dow
down close to 7 percent in the largest single-day drop in NYSE history
and the S&P and Nasdaq not far behind. Coronavirus and a drop in oil
prices are to blame.
The Dow was down 7.8
percent at the close of trading on Monday, with the S&P and Nasdaq
not far behind at -7.61 percent and -7.29 percent, respectively. Plunging oil prices - the commodity lost 30 percent of its value overnight - and coronavirus-related panic took a big bite out of stock values, leading to one of the worst trading days since the 2008 crisis.
The
US wasn’t alone in having its bottom drop out - markets around the
world were feeling the sting, from Greece - hit the worst with a 13
percent drop - to China, which got off comparatively easy at -3 percent.
However, China has been feeling the effects of the coronavirus panic
for longer than anyone.
The epidemic, which has hit most of the world’s economic hotspots, has
depressed demand for oil, leading to the price drop that triggered the
day’s panic-selling - a vicious cycle that doesn't seem likely to stop
anytime soon.
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