THIS IS A BREAKING NEWS UPDATE. AP's earlier story follows below:
Global stocks plunged Thursday after
European markets sank, with shares in airlines like Air France and Lufthansa down about 10%.
Global markets began falling again after Trump's address to the nation late Wednesday, in which he announced vast travel restrictions on
His move also raises the specter of more drastic measures by governments that will hurt business between the world's top economies.
Trump hinted at plans for tax cuts and other economic relief, has yet to unveil details. Lawmakers have resisted his proposal for a cut to payroll taxes.
“The market judgement on that announcement is that it’s too little too late. And while travel restrictions on people coming from
Investors are also looking ahead to the
The future contract for the Dow Jones Industrial Average slumped 5.2% while the S&P 500's lost 4.9%.
The recent decline has been one of
Vicious market swings are becoming routine as investors rush to sell amid uncertainty about how badly the outbreak will hit the economy.
Some economies were already slowing before the viral outbreak even began to cause massive disruptions, first in central
Investors would like to see coordinated action from governments and central banks to stem the threat to the economy from the virus. Lower interest rates and government spending won't solve the crisis — only containment of the virus can — but they can spur business activity and help prop up demand.
For most people, the new coronavirus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia.
The vast majority of people recover from the new virus, but the fear is that the global economy could tip into a recession, with slowdowns in production and a plunge in business activity as people stay home instead of traveling, shopping or dining out.
Many analysts expect markets to swing sharply until the number of new infections stops accelerating. In
In other trading, benchmark
The dollar weakened to
The Associated Press receives support for health and science coverage from the Howard Hughes Medical Institute’s