Financial markets spasmed, sending U.S. stocks to the lowest in three years, Bloomberg’s dollar index to a record and oil down 24%, as the economic fallout from the pandemic outpaced the massive response from governments and central banks.
The S&P 500 fell as much as 9.8%, tripping a trading halt. The Dow Jones Industrial Average wiped out all the gains logged since Donald Trump took office, with investors craving more government spending to offset the impact from the virus.
Bonds tumbled around the world a day after Treasuries notched biggest yield jump since 1982, and municipal bonds extended the deepest rout since 1987 as markets braced for the potential flood of spending. Oil sank to an 18-year low. The dollar strengthened a seventh straight day. The pound hit its lowest level against the greenback since 1985. Dollar-funding markets remained strained, although improved from extreme levels in recent days.
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