International News: stock market chaos

Alex Kitchell, Marketing Coordinator

On Monday, March 9, 2020, oil prices took a drop of 20% due to Russian manufacturers maintaining a high output even after the demand for oil fell. In response, Saudi Arabia claimed it would ramp up production. 

It’s expected that this situation will harm the European economy.

Alongside the oil prices dropping, the COVID19 virus has also taken a toll on the economy. 

The week of March 5, 2020, was comprised of a quick slide in the stock market.

Continuing onto the week of March 17, 2020, the Dow Jones Industrial Average slid 3,000 points which is a major drop. This shows the fear of a coronavirus induced recession period. 

According to Claudia Sahm, a stock market analyst, the stock market is currently in what is called a bear market, or a market down by 20%. 

It’s the real deal (stock market crisis), and Americans know this. That’s why we’ve seen markets collapse. American families are getting increasingly worried about whether they’re going to get sick, whether they’ll lose paychecks, whether they’ll be able to provide for their families. And things are a lot more real than they were a few weeks ago.” stated Claudia Sahm to Sean Illing of Vox. 

All of the panic surrounding the virus has not only taken a toll on the stock market but also has affected stores across the nation. The fear of this virus taking massive hold in our resources has caused many families to go out and buy a backstock of supplies like hand sanitizer, canned food, cereal, and toilet paper. 

This has led to many stores running out of those items unable to purchase more. People have begun selling toilet paper for inflated prices on sites like eBay even though it is illegal known as price gouging. For example, one listing is selling toilet paper by the square for two dollars. 

All of this chaos and uncertainty has led to mass panic over the economy which serves as fuel for even more panic.