The TA-35 index was down 7.93%, and the TA-125 index dropped by 8.18%; S&P 500 and the Dow were down more than 7%.
By REUTERS, JERUSALEM POST STAFFA man stands in front of an electronic board displaying market data at the Tel Aviv Stock Exchange, in Tel Aviv, Israel(photo credit: REUTERS/BAZ RATNER)
Shares continued to drop as the Tel Aviv Stock Exchange opened on Thursday morning.The TA-35 index was down 7.93%, and the TA-125 index dropped by 8.18%.This drop comes in the midst of the coronavirus outbreak which is causing a serious economic decline.Stock Market"s 11-Year Bull Market Ends on Coronavirus UpheavalUS stock markets plummeted on Monday, having sold off in the past two weeks on fears the outbreak would push the global economy into a recession, triggering a brief trading halt on the New York Stock Exchange. The benchmark S&P 500 and the Dow were down more than 7%.US President Donald Trump, who has repeatedly played down the threat posed by the flu-like virus sweeping the globe, was planning to meet with Treasury Secretary Steven Mnuchin and other members of his economic team to weigh possible action, an administration official told Reuters.The exchange’s “circuit breaker” mechanism was activated due to volatility in the market exceeding 5% on Monday.Ittai Ben-Zeev, CEO of the Tel Aviv Stock Exchange, said the circuit breaker was activated to “allow investors time to make informed decisions,” and relies on technology to act in the same manner when facing similarly extreme peaks and valleys. The exchange was closed on Tuesday for the Purim holiday.“Throughout history, the stock exchange has been responding to short-term economic crises – in a similar vein to world markets – which express uncertainty but, in the long run, the stock exchange has demonstrated stability and corrected itself,” said Ben-Zeev.
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