- Title: Plunging Wall Street stocks end record bull run
- Date: 12th March 2020
- Summary: LOS ANGELES, CALIFORNIA, UNITED STATES (MARCH 12, 2020) (REUTERS VIA SKYPE) (SOUNDBITE) (English) CHIEF INVESTMENT OFFICER OF CEO HERCULES INVESTMENTS, JAMES MCDONALD, SAYING: "I think it is going to more signal the damage that's coming than help the market. Obviously there are two aspects to our market, there the fundamentals, the truth that lies in the institutions and the participants of the institutions. And yes, liquidity will help those banks stay in business. But then the other side of the market, which is perhaps more powerful and more impactful to investors, portfolios, is sentiment. And the sentiment in the market in response to a Fed move like this is there is more trouble coming. And this is the third thing. The first thing was a surprise cut of 50 basis points out of the blue. That was a big warning sign of the risk that the Fed sees. The second move was the stoppage of the exchanges, opening limit down, triggering circuit breakers. I've been doing this for 26 years and I've only seen that happen three times before. I saw it happen, 9/11, they stopped the markets. I saw it happen when John McCain stood on the floor of Congress and said, 'Gentlemen, we have to save the economy.' They stopped the markets in 2008. And the only other time I've seen them stop the markets was a flash crash when the computers literally failed. We've seen that happen not once, but twice this week. There are very, very large concerns about a sliding market. And the Fed stepping in with liquidity just nearing the bottom earlier today is another telltale sign to me that market sentiment will probably worsen from here. "
- Keywords: U.S. stocks Wall Street coronavirus outbreak pandemic
- Reuters ID: LVA002C4QVY4T
- Location: NEW YORK, NEW YORK + LOS ANGELES, CALIFORNIA, UNITED STATES
- City: NEW YORK, NEW YORK + LOS ANGELES, CALIFORNIA, UNITED STATES
- Country: USA
- Duration: 00:01:30
- Aspect Ratio: 16:9
- Topics: Economic Events,Equities Markets
- Story Text: Wall Street tanked on Thursday (March 12), ending the longest-ever U.S. bull market after new travel restrictions to curb the coronavirus outbreak spooked investors and rattled world markets.
The Dow Jones Industrial Average fell 2,352.33 points, or 9.99%, to 21,200.89, the S&P 500 lost 260.75 points, or 9.51%, to 2,480.63 and the Nasdaq Composite dropped 750.25 points, or 9.43%, to 7,201.80.
(Production by Conway Gittens and Roselle Chen)
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