It is in the face of the worsening pandemic and the fear that governments will impose new and strict quarantines.
World markets plummeted Wednesday on fears that the coronavirus crisis is worsening and governments will have to impose strict quarantines that will impede commercial and business activity.
The S&P 500 index fell 2.7% in New York in the morning and seemed headed for a third day down.
The week has already contracted 4.8% and could close it with his worst performance weekly since March.
The Dow Jones industrial average fell 777 units (2.8%) to settle at 26,685 and the Nasdaq technology fell 3.1%. 95% of the shares in the S&P 500 were losing value.
Markets were plummeting further in Europe, where both France and Germany seem poised to impose severe quarantines to combat the spread of the virus. Quarantines are probably not as harsh as those applied in March-April, but the fear is that they will still force multiple business closings and stores and therefore hit the world economy.
In Europe, the German DAX index fell 3.9%, the French CAC 50 fell 3.4% and the British FTSE 100 contracted 2.7%.
The crude oil prices they were plummeting in anticipation of a steep decline in demand. US crude fell 5.6% to $ 37.34 a barrel while Brent blend, which is the international benchmark, fell 5.1% to $ 39.48 a barrel.
The yield on US Treasuries decreased from 0.79% to 0.75%.
In Asia, Japan’s Nikkei 225 index lost 0.3%, Hong Kong’s Hang Seng was down 0.3%, the Korean Kospi was up 0.6% and Shanghai’s was up 0.5%.