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Look out! US stocks nosedive on oil price war and coronavirus

The double-punch of crashing oil prices and the worsening global coronavirus outbreak pummeled investor confidence to the point of panic [File: Andrew Kelly/Reuters] We knew this could get really ugly. Now it has.  United States stock markets nosedived at the open of trading on Monday -triggering circuit breakers to halt trading- as the double-punch of…

Look out! US stocks nosedive on oil price war and coronavirus

The double-punch of crashing oil prices and the worsening global coronavirus outbreak pummeled investor confidence to the point of panic [File: Andrew Kelly/Reuters]
We knew this could get really ugly. Now it has. 
United States stock markets nosedived at the open of trading on Monday -triggering circuit breakers to halt trading- as the double-punch of crashing oil prices and the worsening global coronavirus outbreak pummelled investor confidence to the point of panic. 
The Dow Jones Industrial average tanked 1700 points at the open of trading on Wall Street, and kept heading lower. The broader S&P 500 stock index – a proxy US retirement accounts and college savings plans – cratered 7 percent, triggering so-called “circuit breakers” to halt trading for fifteen minutes to prevent a further rout.   
Investors fled stocks and piled into the safety of US treasuries, driving prices up and yields to record lows. The yield on the 10-year US treasury – used as a benchmark for setting interest rates on mortgages, student loans and other financial products – fell below 0.5 percent. The longer-maturing 30-year US treasury yield fell below 1 percent. 
Global benchmark Brent crude fell more than 30 percent on Monday – the biggest drop since the 1991 Gulf War – before paring some of those losses. The rout in crude was triggered by price war caused by a break down in the alliance between the Saudi-led Organization of Petroleum Exporting Countries (OPEC) and its most important ally, Russia. 
(developing)

SOURCE:
Al Jazeera News

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