Publisher's note: This informational nugget was sent to me by Ben Shapiro, who represents the Daily Wire, and since this is one of the most topical news events, it should be published on BCN.
The author of this post is James Barrett.
Stock market trading was temporarily halted Thursday morning after U.S. equities fell 7%, triggering the automatic circuit breaker.
"U.S. stocks hit critical circuit breaker levels on Thursday minutes after the opening bell for the second time this week as global markets plunged amid investor fears about the coronavirus global pandemic," CNBC
reported Thursday morning. "Just as they did on Monday, the S&P 500 hit exchanges' 7% threshold decline in morning trading, halting trade during regular market hours for 15 minutes to ensure order in the marketplace."
In addition to U.S. equities, futures likewise fell 7% and were halted, Bloomberg News
notes, while European stocks "tumbled more than 8%."
"Trading resumed at 9:50 a.m. ET, with both the S&P 500 and Dow Jones Industrial Average extending losses immediately after the restart,"
CNBC reports. "The S&P 500 was last seen down 8% and the Dow was down 9%."
Thursday's decline in stocks, Bloomberg's analysts say, appears to largely be inspired by investors wanting more aggressive responses by the U.S. and Europe than their governments have thus far taken.
"President Donald Trump's travel ban and tepid fiscal measures sparked the latest leg down in risk assets, while the European Central Bank failed to stem the rout after it left rates unchanged, though it temporarily increased its QE program and took steps to boost liquidity,"
Bloomberg's Sam Potter and Jeremy Herron write.
On Wednesday night, President Trump announced a series of "unprecedented" measures to address the growing crisis, including a 30-day restriction on travel from Europe to the U.S.
"To keep new cases from entering our shores, we will be suspending all travel from Europe to the United States for the next 30 days,"
Trump said in a televised address. "The new rules will go into effect Friday at midnight. These restrictions will be adjusted subject to conditions on the ground. There will be exemptions for Americans who have undergone appropriate screenings, and these prohibitions will not only apply to the tremendous amount of trade and cargo, but various other things as we get approval. Anything coming from Europe to the United States is what we are discussing. These restrictions will also not apply to the United Kingdom."
The president also announced emergency financial measures
his administration is taking, including ordering the Small Business Administration (SBA) to "provide capital and liquidity to firms affected by the coronavirus,"
ordering the Treasury Department "to defer tax payments, without interest or penalties, for certain individuals and businesses negatively impacted,"
and calling on Congress "to provide Americans with immediate payroll tax relief."
As Bloomberg details, the response from the stock market to the actions of the U.S. and Europe thus far has been more losses, with the S&P 500 "headed for a bear market, with losses from its February closing record to 25%"
and the Dow Jones Industrial Average sinking "deeper into bear territory after its record bull run ended Wednesday."
In his address Wednesday, Trump assured Americans that our economy was robust enough to weather the pandemic. "Our banks and financial institutions are fully capitalized and incredibly strong. Our unemployment is at a historic low. This vast economic prosperity gives us flexibility, reserves, and resources to handle any threat that comes our way,"
the president said. "This is not a financial crisis, this is just a temporary moment of time that we will overcome together as a nation and as a world."