[Text/Observer Network Xu Qianang] In just 4 days, the US stock market has experienced another major crash. On March 12, local time in the United States, the three major stock indexes all fell by more than 7% at the opening, collectively triggering circuit breakers. The Federal Reserve launched an emergency bailout during the session, but was still unable to reverse the situation.
Finally, the Dow Jones Industrial Index closed at 21200.62 points, a decrease of 9.99%; the S&P 500 Index closed at 2480.64 points, a decrease of 9.51%; the Nasdaq Composite Index closed at 7201.80 points, a decrease of 9.43%. At this point, the three major stock indexes have all fallen 20% from their recent historical highs, and have all entered a bear market.
The Dow Jones Industrial Average fell 9.99%, the largest drop since "Black Monday " in 1987; in terms of points, the index evaporated 2,352.6 points in a single day, setting a historical record.
It is worth mentioning that in the past 20 trading days, the Jones Industrial Index has fallen by more than 8,400 points, returning to the level of June 2017, erasing the " US stocks achievements" accumulated by the President of the United States in 2 and a half years. As of press time, Trump has said nothing on social media about the situation of U.S. stocks.
The trend of the Dow over the past year
Specifically, the Dow Jones index plummeted 1,464.94 points the day before, declaring the end of the 11-year bull market for the index. After the market closed, Trump gave a speech on the prevention and control of the new crown pneumonia epidemic, which caused dissatisfaction in the market, and U.S. stock futures fell more than 1,100 points in response. Yesterday, the three major stock indexes collectively opened lower, with the Dow Jones Industrial Average opening lower at 1,368.51 points. Five minutes after the opening, the three major stock indexes all fell by more than 7%, collectively triggering the first-level meltdown mechanism and freezing trading for 15 minutes.
This is the third meltdown in the US stock market in the past 30 years - the first time was in 1997, and the second time was this Monday.
During the session, the Federal Reserve stepped in to rescue the market and announced that it would expand its overnight financing business to more than 500 billion US dollars starting on the 12th. In addition, it will provide more repurchase operations on the 13th, totaling nearly 1 trillion US dollars. The Fed also expanded the types of securities it purchases for reserves. Affected by this, the three major stock indexes rebounded during the session, reducing their losses to about 3%.
But this was just a flash in the pan. Then U.S. stocks turned around and plummeted. In the end, the three major stock indexes closed down nearly 10%, all falling into bear market territory.
In terms of individual stocks, all 30 stocks in the Dow Jones Industrial Average fell sharply that day, while only one stock in the S&P 500 Index rose slightly by 0.76%. The heaviest losses are still in the tourism, energy, transportation and other industries. Norwegian Cruise Line and Royal Caribbean Cruises fell 35.8% and 31.78% respectively, Marathon Oil fell 27.01%, and Boeing fell 18.11%.
FAANG The five major technology stocks generally fell, with Apple falling 9.88%, Amazon falling 7.92%, Google falling 8.27%, Facebook falling 9.26%, and Netflix falling 9.91%. In addition, Tesla fell by 11.62%, Qualcomm fell by 10.18%, Nvidia fell by 12.24%, and AMD fell by 14.64%.
Popular Chinese concept stocks continued to fall with the market today. China's large-cap stock ETF fell 7.73%, Baidu fell 8.55%, Alibaba fell 6.89%, JD.com fell 7.87%, Ctrip fell 5.95%, and Bilibili fell 7.28%.
Vaccine and new crown drug concept stocks were mixed today, with Moderna falling 5.55%, Inovio rising 13.50%, Gilead Sciences falling 6.08%, 3M falling 9.64%, and Alpha Pro Tech rising 9.55%.
Affected by Trump's "U.S.-Europe travel ban" and the European Central Bank's decision to "not cut interest rates", European stocks hit their largest single-day decline in history yesterday. As of the close, the European STOXX50 index, the German DAX index, and the French CAC40 index all closed down by more than 12%, the British FTSE 100 index fell by more than 10%, and the Italian FTSE MIB index closed down by nearly 17%.
In Asia, the Nikkei 225 index fell rapidly after the opening, and the decline expanded to 7% as of press time; Australia's SP/ASX200 index fell close to 7% during the session; South Korea's KOSPI index fell by 8%, and South Korea's KOSDAQ index fell sharply, triggering a circuit breaker .
The plunge in European and American stock markets this week means that investors have prepared for the worst, including considerations of a global economic recession and the possibility that the epidemic will lead to the lockdown of major cities in various countries. Masanari Takada, macro and quantitative strategist at Nomura Securities, believes that "the market has fluctuated sharply and is on the verge of collapse."
Market fluctuations have caused panic among institutional investors, leading to aimless selling."We (referring to investors) have completely ignored logic and algorithms," said Du Tashi, president of IHT, an American financial services institution. "Out of fear of the unknown, we are completely overreacting... When you realize this At one point, you will find that there will be no logic to the current institutional intervention. "The market will not know how the new coronavirus will spread next," said Parker, an investment analyst at Brooks Macdonald, a British financial services institution. Global GDP will decline in the first and second quarters of this year, and the fiscal stimulus measures of various countries cannot prevent this." McMillan, chief investment analyst of the Commonwealth Financial Network, an investment consulting agency, said that everything is uncertain now. If the number of confirmed cases continues to rise, Consumers will become more negative; if the economy declines, the market will react. Ruida, the investment manager of PineBridge Investments, an American investment institution, also said that the most important thing for now is to build market confidence.
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