header image

[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Inside
Weather


 
Calendar
Today in
S.C.V. History
November 12
1908 - Saugus School District formed from sections of Newhall and Castaic school districts [story]
Saugus School


| Monday, Mar 16, 2020
stock market - New York Stock Exchange.

MANHATTAN — Overtaking last week’s record as the worst since the Black Monday of 1987, the coronavirus-ravaged New York stock market took a nearly 3,000-point nosedive on Monday.

The plummet kicked off right with the opening bell. Circuit breakers halted trading in early morning hours for a 15-minute breather, but the tumbling only continued throughout the day.

At the closing bell, the Dow Jones Industrial Average was down 13% for the day, sitting at 20,188 points, down 2,997.1 points.

The S&P 500 and Nasdaq had similar drops, of 12.98% and 12.32%, respectively.

The free-fall accelerated during a press conference in which President Donald Trump said the worst of the outbreak could last through August despite his prediction that “certain hotspots” throughout the U.S. could be locked down.

“This is a bad one. This is a very bad one,” Trump said. “This is bad in the sense that it’s so contagious.”

Even with his insouciance about Wall Street — “The market will take care of itself,” Trump said — the president’s remarks were far more dire than the president’s previous comments. As last week, Trump had claimed the pandemic was “under control” within the United States.

Earlier Monday, the president also urged state governors to try to purchase respirators and other medical equipment rather than wait on the federal government.

In response to the growing economic malaise, the administration and Congress are working on an $800 billion stimulus package. The House already passed a stimulus package last week.

Stock market futures hinted at a bad Monday when they dropped after the Federal Reserve announced Sunday it would lower the interest rate from as high as 1.25% to as high as 0.25%, their lowest rate since 2015. The move is designed to open up borrowing to corporations and is the Fed’s main tool to combat a recession.

The Fed also said it would purchase $500 billion worth of treasuries and $200 billion worth of mortgage-backed securities.

During a press conference Sunday minutes after the rate cute, President Trump — who had railed against Federal Reserve Chairman Jerome Powell for weeks — said he was very pleased.

“They did it in one step, and I think that people in the market should be very thrilled,” Trump said during a press conference, later adding: “I’m very happy they did it, and you’ll not hear anything bad about me unless “it’s a month or two from now.”

Markets, however, did not react positively to the rate cut.

Overnight stock market futures hit their “limit down” circuit breakers of 5%, halting further downward trades. European markets also took a bath, with the Stoxx 600 closed 5.1% below its start, and Germany’s DAX and France’s CAC 40 also suffered 5% declines.

Among the worst in Europe was Spain’s IBEX, which took a 8.3% plunge after the country announced a 15-day lockdown of nonessential movement. Spain ranks fourth in the world for confirmed coronavirus cases.

Asian markets were not immune, either, with the Nikkei losing 2.4% on the day and the Shanghai SE Composite index down 3.4%. Australia’s ASX 200 index suffered a massive 9.5% hit to its stock market.

Last week markets ended on an upswing following the president’s announcement of a national emergency, with the markets all closing about 9% higher than their opening and the Dow Jones closing at about 23,185 points.

Those gains followed a rollercoaster of highs and lows. On Monday, U.S. markets saw their sharpest drop since the 2008 financial crisis, falling 7% in early morning trading that day before a circuit breaker temporarily halted trading.

Trading on Thursday was similarly dire and hit another benchmark: the largest drop in the Dow since 1987’s Black Monday market crash.

Sandwiched in between on Tuesday, the markets recouped some losses, with the Dow closing about 600 points higher than when it opened.

COVID-19, the new strain of coronavirus responsible for a global pandemic, has now affected well over 179,000 worldwide and more than 4,200 confirmed in the United States, according to data compiled by Johns Hopkins University.

An estimated 7,000 — at least 69 of whom are in the United States — have died globally from the virus, data show.

But some officials claim the numbers are likely higher. A leading health official in Ohio estimates at least 100,000 people in the state already have coronavirus, while one estimate from the Centers for Disease Control and Prevention estimates 160 million Americans could end up infected over the course of the epidemic.

Over the weekend the CDC recommended limiting social gatherings to no more than 50 people. Several states, including New York, California and Ohio, have either mandated or recommended that bars and restaurants close or stay open only to provide take-out and delivery service.

Many schools have temporarily shuttered, including the largest in the United States: the New York City public school system.

During the press conference, Trump said he would rate his performance during the coronavirus crisis “a 10.”

“The market will take care of itself,” Trump said in response to the stock market drop.

— By Nick Rummel, CNS

Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.

0 Comments

You can be the first one to leave a comment.

Leave a Comment


Latest Additions to SCVNews.com
The city of Santa Clarita’s Film Office has released the list of nine productions currently filming in the Santa Clarita Valley for the week of Monday, Nov. 11 to Sunday, Nov. 17.
Nov. 11-17: Nine Productions Filming in Santa Clarita
Prayer Angels for the Military, Inc. needs your help to be sure local heroes overseas are not forgotten during the holidays.
Prayer Angels for the Military Seeks Holiday Help
Get ready to embrace the magic of the season with JCI Santa Clarita’s annual event, Santa’s Helpers.
JCI Santa Clarita Brings the Joy with Annual Santa’s Helpers Event
They made it hard on themselves, but The Master's University's women's volleyball team defeated the Life Pacific Warriors in the final match of the season to win the GSAC Women's Volleyball regular season championship on Friday, Nov. 8.
Lady Mustangs Win GSAC Regular Season Volleyball Championship
Speeding and aggressive driving are ongoing challenges on California roadways.
CHP Secures $2.6M Grant to Address Speeding, Aggressive Driving
1908 - Saugus School District formed from sections of Newhall and Castaic school districts [story]
Saugus School
In the race for Congress George Whitesides (D) has overtaken incumbent Mike Garcia (R) by nearly 7,000 votes.
UPDATE: Local Election Results as of Monday Evening
Whitesides Leads Garcia in Race for 27th Congressional District
UPDATE: Whitesides Wins Race for 27th Congressional District
The Small Business Developmnet Center is offering a free Restaurant Academy online webinar on how to "Start a Food Business in Your Home: The NEW Microenterprise Home Kitchen Operator."
Nov. 14: Restaurant Academy Start a Food Business in Your Home
College of the Canyons is sending both its cross country teams to the state championship meet for a second straight season after the Cougars posted a pair of successful runs at the 3C2A Southern California Regional Championships at Chaffey College on Friday, Nov. 8.
Canyons Cross Country Sending Both Teams to State Championship Meet
Golden Years Dog Sanctuary welcomes all to its Sit or Stroll open house, adoption event and fundraiser, noon-3 p.m. Saturday, Nov. 16 at 12682 Kagel Canyon Road, Sylmar, CA 91342.
Nov. 16: Golden Years Dog Sanctuary Sit or Stroll Adoption Event, Fundraiser
The Castaic Union School District will hold its regular meeting Thursday, Nov. 14 at the District Office, located at 28131 Livingston Avenue in Valencia. A closed session will begin at 5:30 p.m., followed by an open session at 6 p.m., where there will be a report of closed session action.
Nov. 14: Regular Meeting of the CUSD Governing Board
Join Hart show Choir performers on an interactive journey through a holiday classic with Rudolph the Red-Nosed Reindeer 2-7 p.m., Saturday, Dec 7 and Sunday, Dec. 8 at the Hart High School cafeteria, 24825 Newhall Ave., Santa Clarita, CA 91321.
Dec. 7-8: Hart Show Choir Presents ‘Rudolph the Red-Nosed Reindeer’
Heading into their games on Friday, Nov. 8, three Foothill League football teams had hopes for deep playoff runs. Valencia and Hart had their hopes dashed, but Golden Valley won, and will play on.
Golden Valley Moves On, Valencia, Hart Fall
Placerita Canyon Natural Area will host the Mojave Desert Burrowers and Survival event Sunday, Nov. 17 from 2-3 p.m. at 19152 Placerita Canyon Road, Newhall, CA 91321.
Nov. 17: Mojave Desert Burrowers, Survival Event at Placerita Canyon
The Future Farmers of America will host a Christmas Tree Sales Fundraiser Festival in Frazier Park one weekend only on Saturday, Nov. 30 and Sunday, Dec. 1.
Nov. 30-Dec. 1: FFA Christmas Tree Sales Fundraiser Festival
The College of the Canyons Athletics Department invites community members of all ages to run, walk or jog in the 16th annual Thanksgiving Day 'Turkey Trot' event benefiting the college's cross country and track & field programs 8 a.m. Thanksgiving Day, Thursday, Nov. 28 at College of the Canyons Valencia Campus, 26455 Rockwell Canyon Road, Santa Clarita, CA 91355.
Nov. 28: COC Invites Runners to Thanksgiving ‘Turkey Trot’
The Santa Clarita Community College District Board of Trustees will hold a business meeting Wednesday, Nov. 13, beginning at 5 p.m. The board will first meet in closed session at 3 p.m.
Nov. 13: COC Board Regular Business Meeting
Step onto Main Street in Old Town Newhall and be transported to the ultimate Winter Wonderland, complete with real snow, a chance to meet Santa and of course, tens of thousands of dazzling lights to create the perfect kickoff to the holiday season. The city of Santa Clarita welcomes the community to Light Up Main Street, presented by DrinkPAK, in Old Town Newhall on Saturday, Nov. 16, from 4-8 p.m.
Nov. 16: Old Town Newhall Will Light Up Main Street
The County of Los Angeles Department of Parks and Recreation debuted its first new signage and mapping project at the 945-acre Vasquez Rocks Natural Area on Saturday, Nov 9.
Vasquez Rock Natural Area Celebrates New Signage Program
This week, I took my Oath of Office for my third and final term as Fifth District Supervisor.
Kathryn Barger | Oath of Office
As we conclude the 2024 Fall season, I would like to thank all the athletic directors, school administrators, athletic trainers and anyone else responsible for helping implement and navigate our new Health and Safety Bylaws.
Mike West | CIF-SS Message from the Commissioner
1898 - First deed to Vasquez Rocks recorded, to Bertha Wilkens [story]
Vasquez Rocks
The Los Angeles County Sheriff’s Department Missing Persons Unit is asking for the public’s help locating an At-Risk Missing Newhall woman who was last seen on Nov. 5.
LASD Seeks Public’s Help Locating Missing Newhall Woman
SCVNews.com