Dow Falls More Than 2,000 Points Due To Coronavirus, Oil Price Drops

On Monday, Wall Street experienced its worst day since the 2008 financial crisis, with the Dow dropping over 2000 points. This triggered a market circuit breaker, pausing trading to allow investors to assess the situation. The decline is linked to the coronavirus and a crash in the oil industry, as Russia refused to cut production, leading Saudi Arabia to lower prices, causing a significant drop in global oil prices. While lower oil prices might seem beneficial, they harm the US oil industry, potentially leading to bankruptcies and job losses. Initially, investors hoped the virus would be a short-term issue, but its global spread has increased market concerns.

What event triggered the worst day on Wall Street since 2008?

• A natural disaster

• A significant drop in oil prices

• A political scandal

• A major cyber attack

What is the purpose of a market circuit breaker?

• To permanently stop trading

• To allow investors to buy more stocks

• To pause trading temporarily for assessment

• To increase stock prices

Why did Saudi Arabia cut its oil prices?

• To comply with international regulations

• To support US oil producers

• To pressure Russia and regain market share

• To increase global demand

What was the impact of the oil price drop on the US economy?

• Economic growth

• Higher oil prices

• Increased oil production

• Potential bankruptcies and job losses

How has the spread of the coronavirus affected market concerns?

• It has reduced market concerns

• It has led to increased optimism

• It has had no impact on the markets

• It has broadened market concerns