A Bad Day for U.S. Stock Market

    All three major U.S. stock indexes fell sharply, each down more than 3% by the end of the day, with the Dow losing more than 1,000 points, its biggest one-day drop in two years. The Nasdaq had its biggest one-day drop since December 2018. Big tech stocks fell across the board, with Apple down 4.75%, Amazon down 4.14%, Google down 4.29%, Facebook down 4.5% and Microsoft down 4.31%. Tesla fell more than 7%. Financial stocks closed lower, with j.p. Morgan chase down 2.69%, Goldman Sachs down 2.63% and Citigroup down 5.12%.

    European stocks also tumbled collectively, with Italy's MIB (MIB) falling %, Germany's DAX30(GDAXI) and France's CAC40(FCHI) also falling more than 4%.

    The us stock market plunge was not just caused by the novel Coronavirus scare. The US Centers for Disease Control and Prevention (CDC) confirmed on Thursday that 53 new cases of COVID-19 had been confirmed in the US, and the 18 new cases were all evacuees from the Diamond Princess cruise ship. Trump tweeted again that day that COVID-19 is largely under control in the United States. The back still has a few logic: one, the absolute right on the market significant plate growth stock price rise has accumulated a lot of bubbles, the market has the necessity to call back. Second, the US stock market was further frothed at the beginning of the year as President Trump made various provocative moves, low interest rates and reached the first stage agreement on the Sino-US trade war in order to build momentum for his re-election, and the risk was further amplified. All this is merely delaying the bursting of the stock market bubble.