Stock trading halted as Dow plunges 1,696 points

Reuters / Andrew Burton

• US stocks plunged at the open on Thursday after President Trump’s Wednesday coronavirus comments failed to calm investor nerves.
• Trump’s 30-day travel ban on flights out of Europe added to trepidation as airline stocks tumbled worldwide.
• The S&P 500 and the tech-heavy Nasdaq both opened in bear market, down more than 20% from recent highs. The Dow Jones industrial average fell further into bear territory after closing below the threshold on Wednesday.
• Futures on all three major US indexes hit “limit down” early Thursday, slipping 5% before trading was halted.
• Watch major indexes update live here.

US stocks plunged deeper into the red on Thursday after President Trump’s address to the nation failed to calm investor concerns over economic fallout from the coronavirus outbreak.

Selling was so pronounced in the opening minutes that a market-wide circuit breaker was enacted, halting trading for 15 minutes.

All three major US indexes fell more than 7% in early trading. The S&P 500 and the tech-heavy Nasdaq opened more than 20% below their recent highs, putting them into bear market territory. The Dow Jones industrial average, which already closed in a bear market a day earlier, extended losses.

President Trump’s Wednesday night remarks concerning the coronavirus outbreak — which provided a lack of clarity around economic stimulus measures outbreak — spurred overnight futures losses that carried into Thursday trading. Trump also announced a 30-day travel ban on flights out of Europe, which added to trepidation as airline stocks tumbled worldwide.

Here’s where major US indexes were trading as of 9:40 a.m. on Thursday:

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The early halt in regular-hours trading came after future contracts on all three major US indexes hit “limit down” in Thursday’s premarket, hitting the threshold of 5%. The halt persisted until regular trading began at 9:30 a.m. in New York. 

“Markets are in complete crisis mode, past economic data has zero influence on investors’ decision, central bank emergency easing policies are not being effective and politicians’ actions are only adding more confusion,” Hussein Sayed, chief market strategist at FXTM, told Business Insider in an email.

He added: “The one thing that investors are monitoring is how fast the coronavirus is spreading, how many lives it is taking and the number of countries and cities in complete lockdown. It literally feels like we are living in a science fiction movie.”

Travel company stocks pared major losses Thursday. Norwegian Cruise Line fell nearly 28%, while Royal Caribbean Cruises slipped as much as 27%. American, Delta, and United Airlines all fell more than 10%. 

Wall Street’s fear gauge, the Cboe Volatility index (VIX) spiked to more than 66, its highest since the financial crisis. Treasuries and other safe-haven assets such as gold rallied.

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