Stock Market Sharply Declines Amid Coronavirus Fears

The stock market fell sharply Monday, the worst since 1987's Black Monday.

Stock Market Sharply Declines Amid Coronavirus Fears
AP / Craig Ruttle

U.S. stocks fell sharply Monday amid coronavirus fears, suffering their worst day since Black Monday in 1987. The Dow dropped nearly 3,000 points, or about 13 percent.

Trading on the New York Stock Exchange was halted for 15 minutes shortly after the opening bell following an 8% drop on the S&P 500. That's the third time in six sessions that the so-called circuit breaker was automatically triggered.

For the day, the S&P 500 dropped 12 percent. The Nasdaq was down 12.3% for its worst day ever.

Goldman Sachs predicted that economic activity would “contract sharply” for the rest of March and April as consumers and businesses cut spending. The analysts said that may lead to a recession.

The market tumbled despite the Federal Reserve Board slashing its benchmark interest rate to near zero on Sunday —the second emergency rate cut this month. The Wall Street Journal reported that some investors saw the cut and other actions by the Fed as too much stimulus, too soon.