Stock market live updates: Dow tanks 1,000, S&P 500 down 5%, virus cases jump

This is a live blog. Please check back for updates.

Former Federal Reserve chairs Ben Bernanke and Janet Yellen are urging the central bank to buy corporate bonds. Though the authority to do goes beyond the central bank’s authority, it can get the permission from Congress. Bernanke and Yellen said doing so would “help restart” the investment-grade part of the market that “is under significant duress.” – Cox

Investor Bill Ackman advised President Donald Trump on Wednesday to shut down the U.S. for one month in an effort to contain the novel coronavirus and said financial markets would rally in response to such decisive action. Ackman, who founded Pershing Square Capital Management, called on the president to both close the nation’s borders as well as offer Americans a one-month rent, interest and tax holiday. “The moment you send everyone home for Spring Break and close the borders, the infection rate will plummet, the stock market will soar, and the clouds will lift,” the hedge fund manager wrote. — Franck

The U.S. economy will contract by 13% in the second quarter because of the coronavirus pandemic, Deutsche Bank said in a new forecast. A drop that sharp would be “significantly beyond the range of modern historical experience,” the firm said, and would be the biggest “going back to at least World War II.” — Sheetz

Wild swings continued to roil Wall Street on Wednesday, with the S&P 500 dropping more than 5% at the open. The market is at risk to trip the so-called circuit breakers for the second time this week. According to the New York Stock Exchange, a market trading halt may occur at “three circuit breaker thresholds” on the S&P 500 due to large declines and volatility. The exchange classifies this at three levels based on the preceding session’s close in the S&P 500.
The rules, which apply to regular trading hours only, are as follows:
·      Level 1: If the S&P 500 drops 7%, trading will pause for 15 minutes.
·      Level 2: If the S&P 500 declines 13%, trading will again pause for 15 minutes if the drop occurs on or before 3:25 p.m. ET.
·      Level 3: If the S&P 500 falls 20%, trading would halt for the remainder of the day. A Level 3 breach can be triggered at any time. — Li

Source: https://www.cnbc.com/2020/03/18/stock-market-today-live.html

You may like

In the news
Load More