As if the threat of Coronavirus isn’t enough to spook traders, this morning the N.Y. Stock Exchange Trading activated the ‘kill switch’ which effectively stopped the market from dropping lower when an oil price war was instigated by Saudi Arabia.
Called circuit breakers, they are rarely used except when a devastating downward spiral shows no signs of slowing. Fifteen minuted later trading resumed but the Dow is still dangerously low. To put this in perspective, the last time the kill switch was automatically activated was in 2008 when Lehman Brothers collapsed and started the chain reaction that led to the Great Recession.
Bascially, this all stems from a price war between Saudi Arabia and Russia which can have a damaging effect on the world’s economy, as we saw today.
Meanwhile, a tone-deaf President continued to blame the Democrats for creating what he called ‘mass hysteria’ and maintained that everything was ‘FAKE NEWS!’
Ignoring the crisis, Trump continued with his tirade, blaming Saudi Arabia and Russia for the collapsing stock market and yes, ‘FAKE NEWS.’
