US major indices closed in red with one of the worst days in US stock market history in fear of Corona virus.All major indices including Dow Jones, NASDAQ and S & P 500 closed in deep red.
How much did each indices lose intraday?
Dow Jones : −2,997.10 (12.93%) to close at 20.1188.52.
NASDAQ: −970.28 (12.32%) to close at 6,904.59
S & P 500: −324.89 (11.98%) to close at 2,386.13
It means fear of Covid -19 have created havoc on wall street which cost it almost three years of gain in just month.All three major indices are now trading close to level they were trading in early 2017. Even stimulus package by government in two emergency rate cut by Fed reserve is not helping the market.On 15 March, The US Federal Reserve had cut its key interest rate to zero . These rates were observed in subprime crisis in 2008.
Current situation of Corona virus in USA:
Confirmed case:1741. and Deaths : 41
Surprisingly , In China Shanghai composite index has fallen by only 6.88 % in last month.Corona Virus outbreak erupted initially in China and have recorded 81,116 cases and 3,231 dearth till date.
Is it really Corona virus which is causing the fall ? or
Is it just a mere coincidence to burst the overblown bubble of the bull market?