Dow Jones plunges 10% despite $ 1.5 trillion liquidity injection from the Fed


Washington

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Wall street has accelerated its collapse in the last minutes of the session and has closed with the Dow Jones sinking 10%, its worst percentage drop since the 1987 crash, after the suspension of flights from Europe to the United States to contain the coronavirus and despite the drastic injection of liquidity of 1.5 trillion dollarsin the financial system, announced today by the Federal Reserve (Fed).

Upon completion of operations on the New York Stock Exchange, the Dow Jones Industrial it sank exactly 9.99% or 2,352.60 points, standing at 21,200.62 integers. The sS&P 500 Elective, which forced the stock market to stop for 15 minutes this morning by falling 7%, for the second time this week, ended up cutting even further, by 9.51% or 260.74 points, to 2,480.64. The Nasdaq Composite Market Index, which brings together the most important technology companies on the market, fell by 9.43% or 750.25 points, to 7,201.80. All three indicators have entered bearish territory, 20% below its last record: yesterday the Dow Jones did it and today the other two have joined, breaking a bullish cycle between panic sales that has lasted since 2009.

President Donald trump announced last night that his country will suspend for a month from tomorrow Friday all trips from Europe, with the exception of the United Kingdom, to contain the coronavirus pandemic, which already affects 125,000 people worldwide, a measure that has strongly impacted the tourism sector and especially airlines. Among the largest airlines, United (-24.85%), SouthWest (15.1%), Delta (21%), JetBlue (15.33%) and American Airlines (17.28%) fell sharply; while the cruise company Princess Cruises, which belongs to Carnival, the second largest in the world by turnover, announced this Thursday its suspension for 60 days and fell 31%.

Tensions rose momentarily mid-session and losses moderated around 6%, when the Fed announced it will inject $ 1.5 trillion into the financial system, a drastic move to tackle "highly unusual disruptions in the markets of Treasury Funding Related to the Coronavirus Outbreak, ”but investors declined in just a few minutes. The New York parquet thus adds to the negative historical day experienced in the European squares despite the measures taken by the European Central Bank to face the economic impact derived from the expansion of Covid-19.

By sector, the biggest decreases were for energy companies (-12.3%), financial companies (-10.77%), industrial companies (-10.33%) and public services companies (-10.2%). ). Among the 30 listed companies of the Dow, all in red, the most notable setbacks have been taken by Boeing (-18.1%), Dow Inc (-14.5%), Disney (-12.98%) and IBM (- 12.85%). In other markets, the barrel of Texas oil fell 4% to $ 31.50; the yield on the 10-year Treasury bond rose to 0.849%; gold was sliding to 1,568 dollars an ounce and the dollar gained ground against the euro with a change of 1,1163.

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