Trading on the New York Stock Exchange was halted temporarily Monday after indexes plunged 7% in reaction to Saudi Arabia's shocking oil price cut. Trading later resumed and stock indexes recovered some of their losses.
The financial market chaos comes amid increasing worries that the coronavirus epidemic will plunge the global economy into recession.
In early trading, the Dow Jones Industrial Average was down more than 1,900 points — more than 19% off its February peak. Stocks also fell sharply in Asia and Europe.
U.S. indexes rebounded somewhat, with the Dow down about 1,600 points in early afternoon trading. Both the Dow and the broader S&P 500 stock index were down about 6%.
The price of oil also fell — down about 20% Monday following the unexpected Saudi move.
As investors fled stocks and sought relative safety in government bonds, the yield on the benchmark 10-year Treasury note fell below 0.4% overnight before climbing above 0.5% Monday morning.
Over the weekend, Saudi Arabia announced a stunning discount in oil prices — of $6 to $8 per barrel — and a boost in production.
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