US stock markets plunged into deep red again on Wednesday. Investors were also gloomy on European stock exchanges and shares were sold at considerably lower prices despite a positive start to the day.
The S&P 500 fell 4.9 percent on Wednesday to 2,741 points. The Dow Jones index of the 30 largest publicly traded companies in the US fell 6.9 percent and ended at 23,553 points. The Nasdaq technology exchange lost 4.7 percent to 7,952 points.
Half an hour before the closing of the stock exchange in New York, both the S&P 500, the Dow Jones and the Nasdaq were at a 20 percent loss compared to February 19, when stock market indices were at record levels.
This means that the limit of a so-called bear market was exceeded, a period in which stock prices have been in a declining pattern for a long time. The last time this happened was in 2008 during the financial crisis.
Investors were still positive after the announcement of support measures
After US President Donald Trump announced major support measures on Tuesday, investors were still positive. However, the precise details of the plan are still missing.
Meanwhile, the COVID-19 virus is spreading further and European governments do not seem to be able to control the outbreak. On Wednesday, the WHO health organization declared COVID-19 a pandemic.
Wednesday morning gains disappeared in Europe. For example, the AEX recorded a profit of over 2 percent in the morning, but the Amsterdam index closed unchanged. The German DAX index was slightly lower, but the British FTSE 100 lost a staggering 4.9 percent.
Follow the latest developments regarding the virus in our live blog.
The coronavirus in short
- The virus spreads mainly through cough and sneeze drops that hang in the air for a short time. Those who do not show any symptoms hardly pose a risk of infection.
- An infected person infects two to three others on average. This number can decrease with good precautions.
- The vast majority of patients have mild (flu-like) symptoms.
- Almost all deaths concern older or already sick people. You can protect these people with precautionary measures.
- Read here what the most important precautions are.
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