U.S. stocks tanked on Wednesday as the markets are still highly volatile with the government response to the coronavirus economic impact remains unfolding, CNBC reported.
The S&P 500 sank 7 percent at 1 p.m. ET, causing a marketwide “circuit breaker” trading suspension. The Nasdaq Composite fell 6.3 percent, while the Dow Jones Industrial Average dropped 1,660 points, or more than 7 percent. Wednesday’s decline has erased the Dow’s gains since U.S. President Donald Trump’s inauguration on January 2017.
The circuit breaker suspended trading across the U.S. exchanges for 15 minutes, aiming to ensure orderly market behaviour.
This is the fourth time in a week that a circuit breaker was triggered in the market.
Energy was the worst-performing sector in the S&P 500, sliding 11 percent due to the fall in the U.S. crude prices to their lowest levels in 18 years. West Texas Intermediate futures plunged 16.3 percent to $22.50 per barrel.
Wall Street has been undergoing an unprecedented roller-coaster ride due to the coronavirus-led turmoil. The S&P 500 fell more than 4 percent for seven consecutive sessions through Tuesday’s close, CNBC reported. This tops the previous record of six days made in November 1929, according to LPL Financial.
The best remedy for the market downturn and the outbreak in the U.S. is for President Trump to shut down the country, said Bill Ackman, billionaire investor and founder of Pershing Square Capital Management, in a tweet on Wednesday.
“Mr. President, the only answer is to shut down the country for the next 30 days and close the borders. Tell all Americans that you are putting us on an extended Spring Break at home with family,” Ackman said.
“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.”
Mr. President, 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. We need your leadership now!
— Bill Ackman (@BillAckman) March 18, 2020
