Wall Street tanked on Thursday, slamming the book on the longest-ever U.S. bull market after new travel restrictions to curb the coronavirus spread spooked investors and rattled world markets, Reuters reported.
President Donald Trump’s Europe travel ban, announced late Wednesday, sent all three major U.S. stock indexes into a tailspin, with the S&P 500 and the Nasdaq confirming their first bear market since the financial crisis.
The blue chip Dow suffered its worst one-day loss since October 1987’s “Black Monday”.
The benchmark S&P 500 and the Nasdaq have lost over a quarter of their value since reaching record closing highs just 16 sessions ago, as nations around the world grapple with how to contain the fast-moving coronavirus and its economic effects.
A bear market is confirmed when an index sinks 20% or more below its most recent closing high.
“The continued negative action in the market is telling us whatever’s been done so far hasn’t been enough,” said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. “People can’t point to a tangible outcome that’s going to restore normal daily life, so uncertainty remains.”
“Prominent organizations, educational institutions and even sports leagues are foregoing events out of caution,” Sroka added. “Leading institutions around the world are setting the tone. We’re cautious because they’re telling us to be cautious.”
Trump’s sweeping travel restrictions, limiting flights from continental Europe to the United States, sent European shares to a near four-year low and slammed airline stocks, already battered by the spread of COVID-19.