At 21:34 Beijing time, the S & P 500 index fell 7% on the day, triggering the first layer of fusing mechanism. The U.S. stock market for more than three decades has only really triggered a fuse before: on October 27, 1997, the Dow Jones Industrial Index plummeted 7.18%, the largest decline since 1915. Today, you witness history again! !! !!

As investors prepared for the economic impact of the spread of new crown pneumonia, U.S. stocks opened sharply lower. On Monday, the Dow Jones Industrial Average plummeted by 1,800 points, down more than 7%, to close at 2,4048.4 points. The S & P 500 index fell 7%, triggering the first layer of fuse mechanism, and suspended trading for 15 minutes. The Nasdaq 100 index fell 6.8% to 7988.2 points, falling below the 8000 mark.




S & P fused for 15 minutes, rebounded slightly after trading resumed


The New York Stock Exchange, Nasdaq and other stock exchanges introduced this "fuse" mechanism after the October 1987 stock disaster, and in 1989 introduced a follow-up mechanism. If the S & P 500 index falls by 7% or more between 9:30 am and 3:25 pm EST, it will trigger a "first level" stoppage; if the index falls by 13%, it will trigger a "second level" Level "suspension, also lasted 15 minutes.


After the roller coaster market last week, the sharp decline in the opening of US stocks indicates that there may be further turbulence in the future. The S & P 500 has fallen 8% this year, down more than 12% from its recent highs. As investors continue to worry that the outbreak will disrupt global supply chains and bring the economy into recession, they continue to seek safer assets. The 10-year US Treasury yield fell below 0.5% to 0.456% for the first time; the 30-year US Treasury yield fell below 1% to 0.870%.


Anti-epidemic stocks opened higher collectively, with Inovio Pharmaceuticals up 18.52%, United Healthcare up 4.75%, Co-Diagnostics up 4.34%, Novavac Pharmaceuticals up 8.25%, and Alpha Pro Tech up 5.41%.


On the other hand, Brent crude futures plunged 29.07% to $ 32.11 per barrel on Monday, after falling as much as 30%. WTI crude oil futures fell 30.98% to $ 28.49 per barrel. The Energy Select Sector ETF (XLE) fell 15% in pre-market trading on Monday.


Banking stocks are being hit hard as lower yields put pressure on their profit margins, and an oil crash could cause energy companies to default. JPMorgan Chase fell 9.3% in premarket trading.


After the collapse of OPEC + negotiations last Friday, Saudi Arabia sharply lowered its official crude oil sales price for April last Saturday, mainly because new crown pneumonia impacted global demand. Some analysts believe that compared with new crown pneumonia, the crude oil market has become The big problem is that if the Brent crude continues to fall, it is almost impossible for the S & P 500 to continue to rebound. Oil prices could fall to $ 20 this year. Chris Rupkey, an economist at Mitsubishi UFJ, said: "The plan to lower oil prices will allow more cash to flow to people, which will boost consumer spending and boost the economy. The stock market's blow to investors has not been eased. Wall Street's woes could have a negative impact on the economy. "


The Federal Reserve cut interest rates last week in an emergency to deal with the impact of the epidemic on the economy, the first such move since the 2008 financial crisis. Traders predict that the Fed will cut interest rates by 75 basis points at its upcoming March meeting, and according to CME Group ’s FedWatch tool, the probability of the Fed cutting interest rates by 100 basis points in March is 29.2%.


In addition, from March 8th, the United States will enter daylight saving time, the US stock trading time will be changed to 21:30 Beijing time-4:00 am the next day.


European stock markets plummet across the board


After OPEC + and the collapse of negotiations, oil prices fell, European stock markets continued to plummet, and the global spread of new crown pneumonia also caused Asian stock markets to fall sharply. The pan-European Stoxx 600 index fell 6.2% and fell into a bear market region. The oil and gas sector plummeted 14%, causing all sectors to fall.


The British FTSE 100 index plunged nearly 7% to 6013.5 points; the French CAC 40 index fell 7.6% to 4747.8 points; the German DAX index fell 7.5% to 10675.6 points; the Italian FTSE MIB fell more than 9.7%.