Stock exchange briefly halts trading after steep losses due to coronavirus

By Dave Boyer - The Washington Times - Monday, March 9, 2020

Trading halted briefly during a Wall Street rout Monday that produced a selloff of more than 7% due to a steep drop in oil prices and more fallout from the coronavirus.

The Dow Jones Industrial Average dropped more than 1,800 points after the opening bell Monday morning. Trading resumed after the 15-minute “circuit breaker” and the selloff eased slightly, but losses were still heavy by midday.

President Trump was expected to meet with his economic team in Washington later Monday, and the White House has invited top Wall Street executives for a meeting Wednesday as the president considers a range of options to prevent the economy from faltering.

On Capitol Hill, a spokesman for the Senate Finance Committee said Monday that Chairman Charles E. Grassley, Iowa Republican, “is exploring the possibility of targeted tax relief measures that could provide a timely and effective response to the coronavirus.”

“Several options within the committee’s jurisdiction are being considered as we learn more about the effects on specific industries and the overall economy,” said committee spokesman Michael Zona.

By midday, the Dow had lost more than 1,600 points, or 6.2%, and the S&P 500 was down 5.8%.

Oil prices fell 30 percent over the weekend, roiling markets that were already in turmoil from the global coronavirus outbreak. Markets in Europe were also down about 7%, and some analysts were calling it “Black Monday” as concerns mounted of a global recession.

CNBC’s Jim Cramer said the collapse in oil prices and bond yields put the stock market in “uncharted waters.”

“The collapse in yields and oil is signaling an imminent recession,” he tweeted.

Mr. Trump, who was meeting Monday with supporters at a private $4 million campaign fundraiser in Florida, blamed the stock market plunge on “Saudi Arabia and Russia arguing over the price and flow of oil.”

“That, and the Fake News, is the reason for the market drop!” he tweeted.

He said the plummeting oil prices are “good for the consumer, gasoline prices coming down!”

The president also suggested that markets were overreacting to the coronavirus, which has killed 22 people in the U.S.

“Last year 37,000 Americans died from the common Flu,” Mr. Trump said. “It averages between 27,000 and 70,000 per year. Nothing is shut down, life & the economy go on. At this moment there are 546 confirmed cases of CoronaVirus, with 22 deaths. Think about that!”

Health and Human Services Secretary Alex Azar, asked by a reporter Monday what the administration is doing about the threat to the economy, said Mr. Trump’s team is taking a “whole of government approach” to the crisis.

“The notion that we can’t do our day jobs and work on this very serious issue is absurd,” Mr. Azar said. “We’re taking COVID-19 incredibly seriously, and our teams, our public health agencies, are actively working as we sit here and also try to reform the entire health care system.”

Mr. Azar also said the “has the tools and knows the tools to keep this economy going.”

“But his first focus is public health,” he said on Fox News.

The 15-minute halt in trading followed rules implemented in 2013. If the S&P 500 drops 7%, trading pauses for 15 minutes.

If the S&P 500 falls 13%, trading would again pause for 15 minutes if the drop occurs before 3:25 p.m. ET.

And if the S&P 500 falls 20%, trading would halt for the day.

• Dave Boyer can be reached at dboyer@washingtontimes.com.