The S&P 500 recovered a bit when trading reopened 15 minutes later, but is still down more than 5% for the day.
The stock market crashed once again on Monday, kicking off its third straight week of losses amidst rising fears about the continued coronavirus outbreak.
The S&P 500 plunged 7%, triggering an automatic trading halt for 15 minutes. The index recovered a bit when trading re-opened, but is still down more than 5% for the day. The Dow and Nasdaq, meanwhile, are each down more than 5% as well. Another trading freeze would occur if the S&P 500 falls by 13% from Friday’s close.
Oil also lost nearly one-fourth of its value in futures markets on Monday after a weekend that saw two of the world’s largest oil producers, Saudi Arabia and Russia, kick off a price war for crude oil, an act that can further destabilize economies that rely on oil revenue.
In order to reassure investors and try to blunt the economic impacts of the coronavirus outbreak, the Federal Reserve Bank of New York announced Monday it plans to increase the daily quantity of short-term loans it offers banks from $100 billion to at least $150 billion. It will also increase its offering of two-week loans on Tuesday, from at least $20 billion to at least $45 billion.
“These adjustments are intended to ensure that the supply of reserves remains ample,” the New York Fed said in a statement. “They should help support smooth functioning of funding markets as market participants implement business resiliency plans in response to the coronavirus.”