“US Stock Market Stopped After 23 Years” Major U.S. Stock Index Ftures Rise
On Monday, international crude oil prices plummeted by 30%, and U.S. stocks fell sharply at the opening. At one time, the latest “fuse mechanism” was activated, and trading was stopped for 15 minutes. US stocks closed on Monday, the Dow fell more than 2,000 points, the largest single-day drop in history.
US stock market stopped after 23 years Wall Street Declaration “World Stocks Boom Over”
The Dow Jones Industrial Index fell more than 2000 points during the day. The biggest drop since December 2008. Compared to the previous trading day, it ended 2013.76 points (7.79%), ending at 27,385.02. Refinery stocks, which are currently at the top of New York’s market cap, plunged, leading the index to decline.
Oil price plunging triggered by the oil price war between Saudi Arabia, the world’s largest oil producer, and Russia, the third largest oil producer, could hurt the profitability of the oil refinery industry, the world’s second largest oil producer.
The S & P 500 also traded at 2746.56, down 225.81 points (7.60%). The Nasdaq Composite Index, which focuses on information technology (IT), also plunged 624.94 points (7.29%) to 7950.68. It fell vertically from 8500 to 7900 in one trading day.
Three major U.S. stock index futures rise
After the Trump (Trump) administration announced at 6:40 p.m. ET on Monday that more economic measures would be taken, the Dow Jones Industrial Average futures rose about 530 points at about 10 p.m. Will rise more than 550 points. S & P 500 index futures and Nasdaq futures also showed an upward trend.
A major decline is expected in the New York market on Thursday as the major US stock index futures pushed the Asian market to its lower limit. There is a possibility that the circuit breaker will be activated. A circuit breaker is a system that suspends stock sales when stock prices soar or plummet in the stock market.
According to Barence, the “Phase 1” circuit breaker is triggered when the S & P 500 index drops by more than 7% of the previous day’s closing price, and trading stops for 15 minutes. The threshold for the first stage is 2764.30 points, the S & P 500 index’s 208 point drop from the close of the sixth. If the lower limit is reached after 3:25 pm ET, there will be no interruption.
The lower end of the Level 2 Circuit Breaker is 13%. Similarly, trading stops for 15 minutes and continues after 3:25 pm. The trigger threshold is 2585.96 points, down 386 points. The lower limit for Phase 3 is 20%. When phase three is triggered, the market closes early.
Experts point out that a sharp drop in oil prices is a major factor behind the stock market’s fall. According to CNBC, Vital Nourige founder Adam Krysapulley said, “Condensed milk has become more of a problem for the market than coronaviruses.”
This is because oil is a “critical” factor in the US economy. Crysapully explains that many Americans are employed in the oil industry and that high leveraged oil and gas companies are the core of the fixed income market. “The oil industry is like” FANG, “a big IT technology company, like Facebook.
The decline in demand caused by concerns over the spread of corona has led to lower oil prices. In addition, the sharp fall was caused when non-member countries such as the Organization of Petroleum Exporting Countries (OPEC) and Russia, which had been expected to actively cut production, failed to reach a reduction agreement. In short, Saudi Arabia has cut its crude oil export prices for India in April and has increased production by more than 10 million barrels per day starting next month.
At 1:23 pm Korea Time, the WTI dropped 33.16 percent to $ 27.59 a barrel. Brent plunged 30.33 percent to $ 31.54.
Goldman Sachs has now lowered its outlook for oil prices in the second and third quarter to $ 30 a barrel. Goldman analysts said, “The oil war between OPEC and Russia has clearly ended this weekend.” “It’s worse than it was in November.”
Three Major U.S. Stock Index Ftures Rise - /10
On Monday, international crude oil prices plummeted by 30%, and U.S. stocks fell sharply at the opening