- The Dow Jones Industrial Average plunged below its closing level from President Trump's inauguration day, effectively wiping out all gains made during his presidency.
- It fell as far as 19,727.33 around 12:30 p.m. ET on Wednesday as Trump's coronavirus taskforce delivered an address. That was below the 19,732.40 closing level for the Dow on Jan. 19, 2017.
- The index jumped 49% from Trump's inauguration to its February 12 peak.
- Since hitting a record high, the market's negative reaction to mounting coronavirus concerns pushed stocks into their first bear market in 11 years.
- The White House has moved to stem the outbreak's economic fallout, calling on people to avoid large groups and announcing on Tuesday plans to send Americans economic relief checks.
- Watch the Dow Jones Industrial Average update live here.
The Dow Jones Industrial Average slid below the level seen on President Trump's inauguration day.
It plunged as far as 19,727.33 around 12:30 p.m. ET on Wednesday as Trump's coronavirus taskforce delivered an address. That was below the 19,732.40 closing level for the Dow on Jan. 19, 2017.
Prior to its swift comeuppance, the benchmark index soared 49% from its inauguration day close to its February 12 peak as Trump slashed regulations, cut corporate taxes, and ushered in a wave of new stock buybacks.
Wall Street cheered as the administration pushed the bull market into a new decade and lifted profits across industries. Roughly one month after the index's all-time high, the market gains have dried up.
The coronavirus and its widespread economic fallout kicked off intense bouts of selling in late February after new outbreaks cropped up in South Korea, Italy, and Iran. Stocks fell into correction territory on February 27 as fresh volatility drove back-to-back declines.
The first week of March saw small rebounds wiped out by Friday's close. By March 12, stocks entered their first bear market in 11 years as compounding coronavirus risks and a new oil-price war dragged prices even lower through the month. The plunge into bearish territory was the fastest ever seen and did away with one of President Trump's most popular and optimistic indicators of economic health.
The government has since issued various forms of economic stimulus to pad the economy and avoid a prolonged downturn. The White House on Monday urged individuals to maintain social distancing and avoid groups of more than 10 people. Treasury Secretary Steven Mnuchin announced Tuesday afternoon the administration wants to send checks to Americans within weeks as much of the population bunkers down at home.
The Federal Reserve has taken up numerous monetary policy measures to keep lending markets healthy. The coronavirus outbreak and corresponding calls to self-quarantine have drastically hit consumer activity and US businesses' revenue streams.
The central bank slashed its benchmark interest rate near zero on Sunday and initiated the purchase of at least $700 billion in Treasuries and mortgage-backed securities to support credit markets. The Fed's New York branch has also added trillions of dollars to the financial system through repurchase agreements in recent days, shoring up more cash for liquidity-starved markets.
The central bank announced Tuesday it would resurrect a commercial paper purchase facility to further support US businesses hit by the coronavirus and related shutdown. The facility, made in partnership with the Treasury, will allow the Fed to buy up short-term debt instruments typically used for day-to-day expenses like rent and payroll.
Even as markets turn red for Trump's time in office, some experts still think his tenure could see gains before the next inauguration. Analysts at Goldman Sachs predicted Friday the S&P 500 could fall as low as 2,000 before rallying to 3,200 by the end of 2020. Such a jump would place the 500-stock index within 6% of its February peak and recover most gains made through the Trump presidency.
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