As US Stocks Tumble, Coronavirus Amplifies Worries About Global Recession

"Bottoming is a process, it's not a one-day process normally," said Quincy Krosby, chief market strategist for Prudential Financial.

As US Stocks Tumble, Coronavirus Amplifies Worries About Global Recession

Coronavirus has spread to over 110 countries and territories. (Representational)

New York:

Wall Street stocks sunk deep into the red Thursday afternoon as the economic toll from the coronavirus mounts, amplifying worries about a global recession.

The Dow Jones Industrial Average fell more than 1,850 points, or 7.9 percent, to 21,701.67 at around 1740 GMT.

The broad-based S&P 500 shed 7.3 percent to 2,54158, while the tech-rich Nasdaq Composite Index slumped 7.0 percent to 7,475.25.

Stocks bounced somewhat after the New York Federal Reserve announced measures to inject an additional $1.5 trillion in cash into financial markets this week, and continue to do so for the coming month at least.

But the boost was short-lived following a stream of announcements about cancelations due to the virus.

More major sporting events were canceled, with Major League Soccer indefinitely suspending games shortly after a similar announcement from the National Basketball Association, and a big tennis championship in Florida also fell by the wayside.

"Bottoming is a process, it's not a one-day process normally," said Quincy Krosby, chief market strategist for Prudential Financial.

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"Now the idea of a recession is part of the narrative. Are we going into one? And if we are, how deep will it be? Will we have a recovery in the second half."

The latest brutal session came after European stock bourses lost more than 10 percent, as markets recoiled after President Donald Trump's announcement to bar travel from Europe for 30 days.

That announcement battered airline and travel stocks, with Delta Air Lines and United Airlines each losing more than 15 percent.

Shares of Carnival cruise lines plunged 16.9 percent as it announced it would pause its Princess line for two months.

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