A roller coaster week for Wall Street


Yasmin Vizguerra, Editor

 With the spread of Coronavirus, formally known as COVID-19, has become one of the biggest threats in the world, specifically to the financial market. 

       Starting Monday, the stock market experienced severe plummets in the market, leading to a circuit breaker, suspending all trading and selling for 15 minutes. 

        A circuit breaker is a forced 15-minute halt in trading in order to give traders time to reorganize themselves from stocks going down.

       Markets in Europe and Asia also experienced severe plummets, making it one of the worst weeks in the market since the 2008 financial crisis.

       The Dow Jones industrial stock has gone down 2,100 points since the beginning of the week. 

        It went down nearly 1,700 points following President Trump’s announcement of imposing a travel ban, restricting travel to European countries excluding the United Kingdom, for 30 days to reduce the spread of the virus. The ban would start Friday. 

       Standard & Poor’s stock went down by 7 percent within minutes of the market opening on Thursday. 

       By midmorning, Dow had gone down more than 1,800, or a 7.6 percent decrease after rebounding slightly earlier in the morning. 

      Nasdaq was down 6.5 percent by midmorning as well.

      Thursday’s dives for Dow comes within a frantic week, reflecting a 20-percent fall from the all-time high in mid-February.

      Standard & Poors triggered the first circuit breaker on Monday after experiencing a 7 percent fall. By the end of the day, it had a 7.6 percent decrease. 

      By the end of the day Monday, Dow had also lost 2,014 points (7.8 percent). 

      The market recovered slightly on Tuesday, posting across-the-board gains, only to fall back on Wednesday after the World Health Organization (WHO) declared COVID-19 a global pandemic. 

      Midday on Thursday, the Dow fell more than 9 percent, or 2,140 points, the index hitting a low-point to have went down by more than 2,200 points. 

      S&P went down by 8.2 percent, tripping a circuit breaker earlier in the morning after falling below 7 percent, stopping trading for 15 minutes. The next circuit breaker will be triggered if it falls to 13 percent.

      Nasdaq Composite was down 8.1 percent.

      Ed Yardeni, president of Yardeni Research, wrote in a commentary on Thursday, stating: “Measure of consumer and business confidence are likely to drop sharply soon as well. A recession isn’t inevitable, but it certainly is becoming more likely.” 

      There’s no way of telling if a global slowdown is going to happen, no one does, but investors are preparing as if it will, preparing for the worst of the situation.