Wall Street trading had the worst day of trading
At the end of the trading day, Wall Street markets faced the critical results of latest global news. Dow Industrial Average has shrunk by 7.79%, ending up at 23 850.79 points, Nasdaq lost 624 points and S&P had to endure a loss of 7.6%, ending up at 2 746.56
The most important reasons for the global decline are oil and the pandemic. OPEC+ session failed to reach an agreement over sustainable production strategy, which resulted in Russia walking out on the organization. Now Moscow and Riyadh are expected to flood the markets with cheap crude oil. The price of a barrel is currently at around 30 US dollars. The markets reacted badly, stocks of oil companies, including the giant Saudi Aramco, lost its value.
Markets are also still working out ways to safely react to the coronavirus pandemic. The virus continues to spread across the US, 607 cases of infection have been reported thus far. Businesses are suspending the operations or switching to remote work, public places are closing down, all non-essential travel is being cut. Obviously, the markets are not reacting well to these factors.
Finally, the rumours about possible industry bailouts are also upsetting the investors. The Federal Reserve is putting effort into keeping the market stable, reducing the interest rates, yet no significant results have been seen thus far.