By Jonathan Garber FOXBusiness
The Federal Reserve cut rates to near zero and launched a $700B asset-purchase program.
The Dow Jones Industrial Average was off over 2,100 points after falling by more than 2,800 points, or 12 percent, at its worst levels while the S&P 500 and Nasdaq Composite were down around 7 percent each. Trading was halted for 15 minutes shortly after the opening bell due to the S&P 500’s decline of more than 7 percent.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 20760.8 | -2,424.82 | -10.46% |
| SP500 | S&P 500 | 2470.03 | -240.99 | -8.89% |
| I:COMP | NASDAQ COMPOSITE INDEX | 7151.926869 | -722.95 | -9.18% |
The sharp selloff comes after the Fed, at an emergency meeting on Sunday evening, cut its benchmark interest rate by 100 basis points to near zero and announced a $700 billion asset purchase program. The Fed’s action was part of a coordinated effort by central banks around the world.
“The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States,” the Federal Open Market Committee said in a statement. “The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses.”
HOW LOW CORONAVIRUS-LED STOCK MARKET SELLOFF COULD GO: GOLDMAN SACHS
Looking at stocks, airlines remained at the center of the storm after United Airlines said its March revenue is expected to be $1.5 billion less than a year ago and that it would reduce flight capacity by 50 percent in April and May.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UAL | UNITED AIRLINES HLDG. | 34.20 | -7.44 | -17.87% |
| DAL | DELTA AIR LINES INC. | 35.19 | -3.17 | -8.26% |
| AAL | AMERICAN AIRLINES GROUP INC. | 14.43 | +0.12 | +0.84% |
Casino operators were sharply lower after MGM Resorts and Wynn Resorts suspended operations at their Las Vegas casinos. However, cruise operators rallied after President Trump announced they would suspend departures for 30 days.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MGM | MGM RESORTS INTERNATIONAL | 11.00 | -4.44 | -28.76% |
| WYNN | WYNN RESORTS LIMITED | 60.11 | -12.41 | -17.11% |
| NCLH | NORWEGIAN CRUISE LINE HOLDINGS LTD. | 11.38 | +0.28 | +2.52% |
| RCL | ROYAL CARIBBEAN CRUISES | 31.68 | -0.65 | -2.01% |
Apple shares tumbled after the tech giant announced the closure of all 468 of its retail stores outside of Greater China until March 27. On Friday, the company reopened all 52 of its Greater China stores.
Nike, Abercrombie & Fitch and Urban Outfitters also announced the closing of all of their retail stores while Starbucks said it would shut some locations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 251.60 | -26.37 | -9.49% |
| NKE | NIKE INC. | 68.94 | -6.64 | -8.79% |
| ANF | ABERCROMBIE | 9.62 | -1.66 | -14.67% |
| URBN | URBAN OUTFITTERS INC. | 13.36 | -2.32 | -14.80% |
| SBUX | STARBUCKS CORPORATION | 60.38 | -9.54 | -13.64% |
Elsewhere, energy stocks plunged as West Texas Intermediate crude oil cratered to the $29 per barrel level.
Miners were also weaker as copper sank 4.5 percent to $2.3545 per pound, its lowest since the 2016 election, and gold slid 3.9 percent to $1,460 an ounce.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORPORATION | 35.60 | -2.52 | -6.62% |
| CVX | CHEVRON CORP. | 72.10 | -11.32 | -13.57% |
| CLR | CONTINENTAL RESOURCES | 9.18 | -0.65 | -6.57% |
| NEM | NEWMONT GOLDCORP CORPORATION | 42.02 | +2.52 | +6.38% |
| GOLD | BARRICK GOLD CORP. | 16.74 | +1.07 | +6.83% |
Meanwhile, banks fell as heavy buying across the U.S. Treasury complex flattened the yield curve. The benchmark 10-year yield hovered around 0.81 percent while the 2-year yield was near 0.33 percent.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JP MORGAN CHASE & CO. | 90.45 | -13.46 | -12.95% |
| BAC | BANK OF AMERICA CORP. | 20.96 | -3.20 | -13.24% |
| WFC | WELLS FARGO & COMPANY | 28.50 | -2.38 | -7.72% |
In Europe, France’s CAC led the decline, falling 5.6 percent, after the government shut restaurants and bars. Germany’s DAX dropped 4.9 percent and the FTSE slipped 4.6 percent.
Overnight, markets slumped across Asia with Hong Kong’s Hang Seng shedding 4 percent, China’s Shanghai Composite sliding 3.4 percent and Japan’s Nikkei losing 2.5 percent.
