Coronavirus Wrecks Havoc on the American Economy
The Dow dropped 1,191 points or 4.4%, making it its highest one-day point drop in history.
The S&P 500 closed down at 4.4% and finished the day below the 3,000 point mark.
The Nasdaq Composite ended down at 4.6%, over 10% under its last peak.
With this the Dow, S&P 500 and Nasdaq Composite all are headed towards their worst week since the 2008 financial crisis.
As the government took action to shut down large portions of the nation’s economy to staunch the outbreak, stocks continued to fall along with the price of oil. Goldman Sachs analysts predicted that United States unemployment aid applications in midst of the corona virus rose more than 2 million, an all time high.
Investors have brought up concerns that the coronavirus will send the United States into a deep recession. Steps taken by the government to box in the spread of the virus are closing down numerous jobs and creating disruptions and layoffs. Investors are optimistic as they wait for the Trump administration to pass legislation that will put billions of dollars into households and industries that have been affected by the coronavirus.
In an attempt to help revive the market, the United States Federal Reserve reported that it would attempt to staunch spiking interest rates in the bond market by encouraging banks to purchase state and municipal bonds.
Donate to THE SMOKE SIGNAL
$25
$500
Contributed
Our Goal
Your donation will support the student journalists of Hart High School - CA. Your contribution will allow us to cover our the cost of our website and print editions.