Fifth Week of Market Mayhem Starts With Limit-Down U.S. Futures
- Cities tighten restrictions with virus spreading faster
- Stocks plunge 15% in worst week since financial crisis
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Grim speculation about the fate of the global economy sent U.S. equity futures to exchange-mandated halts for the ninth time in 10 days. Benchmarks for American equities are now down more than 32% in a month.
Warnings about damage to the economy from the coronavirus grew more dire as cities from New York to Los Angeles all but shut down and cases rose rapidly. Federal Reserve Bank of St. Louis President James Bullard said U.S. unemployment may hit 30% in the second quarter, with GDP falling by 50%. That exceeds the warning from Goldman Sachs Group Inc. last week of a 24% contraction. Morgan Stanley said Sunday the contraction could be 30%.