US markets extended their losses, and were trading more than 10 percent lower, after trading resumed following a halt at 8 percent down.

At the time of writing, the S&P 500 was trading down 301 points to 2409 points. The Dow Jones plunged 11.4 percent, or 2,645 points, to 20,539.

The market reaction was triggered by the continuing spread of the novel coronavirus (Covid-19), which has seen more than 175,000 cases globally.

Aviation stocks were the most hit, falling 9 percent to 22 percent, as major carriers announced grounding of fleet, suspended operations partially and asked much staff to go on leave.

Trading in the US market is halted for 15 minutes when a benchmark index falls 8 percent. A fall of 13 percent suspends trading again for 15 minutes. A fall of 20 percent halts trading for the day.

Volatility continued to remain the most elevated since the 2008 crash with stocks sinking despite the US Fed cut interest rates to zero a day earlier and unveiled a USD 700 billion quantitative easing programme.

US stocks mirrored the movement in global markets. The Indian market today too sank about 8 percent.

Other asset classes, too, suffered, with WTI crude falling below USD 30 while gold fell over 4 percent to USD 1,462.

Economists have warned that the global economy faces a stark recession risk from the various restrictions imposed by authorities worldwide to prevent a contagion.

First Published:Mar 16, 2020 7:06 PM IST