Coronavirus Selloff Drives Dow Jones to Second Largest Percentage Drop on Record
New York, N.Y. (PPD) — The Dow Jones Industrial Average (^DJI) suffered its largest point drop on record Monday, amid concerns the economically constricting coronavirus restrictions could last until July or August.
While the major market indexes had been down at least 5% the entire trading session, a last-minute selloff was driven by remarks from President Donald Trump and the Coronavirus Task Force at the daily press briefing.
The Dow closed down −2,997.10, or 12.93% at 20,188.52. The percentage drop was rivaled only by Black Monday in 1987. Interestingly, it’s also only 2 of 13 large selloffs that were not followed by a recession.
Coronavirus concerns triggered market-wide circuit breakers (MWCB) that halted trading twice last week. It took one minute after the opening bell on Monday for the market-wide circuit breakers to trip again.
The National Bureau of Statistics reported data on Monday showing the “devastating” impact on the Chinese economy due to the coronavirus outbreak, even though the spread of the virus appears to have turned a corner in China.
The SSE Composite Index (^SSE) was down -98.18, or -3.40% to ¥2,789.25. Analysts warn the damage to the world’s second largest economy is likely far worse than initial indicators suggest. The data were averaged with January and excludes March, the period most impacted.