Dow Falls over 2,000pts as Concerns over Coronavirus and Oil-Price War Escalate

The New York Stock Market sank more than 7% on Monday to post its worst day since the financial crisis in 2008 as concerns over the spread of coronavirus and an oil price war between world’s top oil producers left investors no choice but to retreat from risky assets.

 

Over the night, Dow Jones dropped 2,013.7 points or 7.79% to close the day at 23,851.02 points, slightly shy from its worse drop in a day on October 15, 2008, when it fell 7.87%.

S&P 500 plummeted 7.6% to 2,746.56 points, while Nasdaq plunged 7.29% to 7,950.68 points.

 

The Fed stated on Monday that it will increase the amount of money it is offering to banks for their short-term funding needs in overnight operations from $100 billion to $150 billion through Thursday. The offering from the Fed was to make sure the funding, or repo, markets are working properly.