Markets will 'bounce back very big,' says Trump as Wall Street continues ugly week - NBCNews.com

Wall Street took another beating Thursday morning, with trading halted twice in the same day as concerns mounted about the economic impact of the coronavirus outbreak.

“It’s going to all bounce back and it’s going to bounce back very big,” President Donald Trump said Thursday, during a meeting with Ireland's Prime Minister Leo Varadkar.

The S&P 500 plunged by 5 percent in premarket trading, triggering a "limit down," which halts all trading on the New York Stock Exchange for 15 minutes. All market activity was paused again just minutes after the opening bell, when the S&P declined by 7 percent, triggering a similar "circuit breaker."

The Dow Jones Industrial Average also fell sharply, hitting a session low of more than 2,250 points in morning trading, just the latest tumble in an ugly week that has seen businesses and governments shore up their response to the pandemic. Companies from Google to JPMorgan have asked employees to work from home where possible, and Italy has locked down all 60 million residents.

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Investors had been anticipating robust economic relief as part of President Donald Trump's address to the nation on Wednesday night, in line with his pledge earlier this week to take "major steps" and implement a "very substantial" tax cut as part of the administration's response to the pandemic.

However, markets were underwhelmed by the economic stimulus package, which offers emergency loans to small businesses, deferred tax payments for some people, but made no specific mention of paid sick leave or free testing for the coronavirus, which continues its spread across the U.S.

March 12, 202004:54

In his address from the Oval Office Wednesday, Trump announced he would be "suspending all travel from Europe to the U.S. for the next 30 days" in an effort to limit the spread of the coronavirus. That created immediate panic as Americans abroad rushed to buy last-minute tickets home, and also fueled trader concern that suspended travel and trade between the U.S. and the European Union would come at a steep economic cost.

The White House later clarified that Trump’s comments did not refer to U.S. residents or permanent citizens and only "suspends the entry of most foreign nationals who have been in certain European countries at any point during the 14 days prior to their scheduled arrival to the United States."

Travel stocks continued their double digit plunge, with airlines and hotels hardest hit. American Airlines also announced it would be placing price limits on U.S.-bound flights from Europe.

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Trading was also suspended earlier this week, when the S&P 500 hit the 7 percent "circuit breaker" threshold on Monday morning. That sell-off came after an oil production spat between Russia and Saudi Arabia pushed the price of oil down by 30 percent overnight, the biggest drop since the Gulf War, in 1991.

This is now the worst week for markets since the 2008 financial crisis.

Lucy Bayly

Lucy Bayly is the business editor for NBC News.

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Markets will 'bounce back very big,' says Trump as Wall Street continues ugly week - NBCNews.com
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