After a huge decline in values, there is now a sell-off in the US stock market. The S&P 500 and Nasdaq index crashed in early trade on Thursday. Desperate to stop this decline, trading on Wall Street had to be stopped for a few minutes.
This decline in the US stock market followed President Donald Trump’s imposition of a travel ban on European nationals to check the outbreak of coronavirus in the US.
On Thursday, the S&P 500 index lost 7% in early trading, after which trading was stopped for 15 minutes. After reaching an intra-day record high in February, the index fell by 24%.
Travel and related cos in Wall Street hit hardest
Today, the S&P 1500 Airlines Index declined by 10.1% after Trump imposed the travel ban. The shares of Cruise Liners Carnival Corporation and Royal Caribbean Cruises Ltd fell by 17% and 24% respectively.
Boeing shares saw a decline of 15%. Its stock has fallen by 40% so far this year amid reports of flaws in the 737 MAX jet.
After the reduction in interest rates by the US Federal Reserve, there is disappointment among investors who complain Trump is not taking any major decision on public health response.
The shares of online travel agents companies, hotel operators and casino operators are seeing a decline of up to 10%.
On Thursday, the Dow Jones Industrial Average was seen trading at 21,686, down 1,867.08 points, or 7.93%, in early trade. The S&P 500 index is trading at 2,553 points, falling 188 points, or 6.86%. The Nasdaq Composite also lost 515 points or 6.49%. It is currently trading at 7,436 points.
Heavy fall in Indian market also
On Thursday, heavy selling comparable to the scene on Wall Street was observed on Dalal Street in India. The major index of the BSE had lost 3,100 points at one time during the Sensex trading.
However, the BSE Sensex ended 2,919 points down at 32,778 after a day’s trading.
The NSE Nifty 50 lost 868 points and closed at 9,590. Thursday is being described as historic in terms of maximum decline.