Wall Street suffers rout as White House considers proposals to help economy

The White House was drafting emergency measures Monday to prevent an economic slowdown and to blunt the spread of the coronavirus, as the stock market suffered a rout amid tumbling oil prices, and concerns for a recession rose.

The three major U.S. stock markets each fell more than 7%, with the Dow Jones Industrial Average losing 2,013 points, or 7.79 %, to close at 23,851 points. The S&P 500 had its worst day since 2011, and stock prices plummeted so quickly at the opening bell that trading was halted temporarily when an automatic “circuit breaker” kicked in.

The White House invited Wall Street executives to a meeting with the president Wednesday to discuss ways to prevent the economy from faltering.

The president also was meeting late Monday with Treasury Secretary Steven T. Mnuchin and other top economic advisers to discuss options. Among the proposals being considered by President Trump and his economic team were providing no-interest loans to help small businesses hurt by the downturn, deferring taxes for hard-hit sectors such as the airline industry and expanding paid sick leave for workers to slow the outbreak, according to people familiar with the discussions.

Mr. Mnuchin and National Economic Council Director Larry Kudlow will attend Senate Republicans’ weekly lunch Tuesday to discuss the economy and possible congressional action to deal with fallout from coronavirus outbreak.

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.”

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“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.