Stock market takes a major hit amid travel ban imposed by president Trump

Highlight:-

  • Dow is 20% down from its performing high
  • US government would provide capital and liquidity to all small firms affected by the outbreak

In a bid to control or slow down the outbreak of coronavirus, president trump today imposed a travel ban on people traveling from Europe to the United States, the travel ban, in general, is not welcomed openly by the citizens of UK and USA amidst vague statements and uncertain travel regulations and due to no proper plan of action or preparedness regarding the coronavirus situation.

But the ban didn’t help trump or the citizens, because many believe this measure is causing a major hysteria amongst the citizens and has caused a major wave of panic as this coincides with WHO declaring coronavirus a pandemic, the stock market has not reacted kindly to it either and the stocks have plummeted, the wall street is in splits and is noticing a first major drop of this intensity since the recession.

Few of the companies have seen a major drop in their shares, Dow is 20% down from its performing high, Japan’s Nikkei 225 the benchmark of Japanese stocks has fallen down by 5% since the morning. The scheme of drop experienced by Dow and some other stocks are generally considered to be accompanied by a recession.

On the bright side, US officials have announced, the US government would provide capital and liquidity to all small firms affected by the outbreak. Experts have claimed this situation cannot be entirely be blamed on the virus itself, it is a result of unrest and fear in the market, this is pushing the global economy in the darker zone, also the recent development in the oil prices is a major reason for an unsettled market.