New York Stock Exchange Closes With Downfall

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On the American stock market, where Kovid-19 concerns were effective, the Dow Jones index fell 10 percent, its biggest loss since 1987

The New York stock market closed Thursday with a sharp decline with concerns over the new type of coronavirus (Kovid-19) outbreak.

At the close, the Dow Jones index fell over 2300 points and fell 10 percent to 21,200.95 points. The index suffered its biggest loss since the “black monday” in 1987 with the said decline.

The Nasdaq index fell 9.44 percent to 7.201.80 points and the S&P 500 index fell 9.92 percent to 2.469.38 points.

Following the Dow Jones index, Nasdaq and S&P 500 indices fell 20 percent behind their previous record closings, technically entering the “bear market”.

The S&P 500 index lost 7 percent after the opening today, causing the “circuit breaker” application to take place in the stock market for the second time this week and transactions in the market were stopped for 15 minutes.

In the negative course in the American market, the Kovid-19 outbreak’s uncertainty in the economy and US President Donald Trump’s exemption of Britain since Friday night announced that they suspended all travels from Europe for 30 days.

Intensive sales in the stock market continued despite the US Central Bank’s (Fed) decision to pump liquidity into the market.

The Fed’s New York Branch has announced that it will offer a total of $ 1.5 trillion of liquidity to markets with unusual fluctuations due to the Kovid-19 outbreak.

While the bank provided 500 billion dollars of liquidity to the market with its 3-month repo transaction today, it announced that it will inject 500 million million of liquidity into the market tomorrow with 2-month and 3-month repo transactions.

On the other hand, an analysis by the independent research firm Capital Economics in London stated that the American economy is expected to shrink by 4 percent annually in the second quarter of this year.

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