Updated March 19, 2020 04:51:31

Photo: The US market has plunged despite moves by the Trump administration to stimulate the economy. (AP: Mark Lennihan)

Wall Street has resumed its downward spiral even as the US Government scrambles to pass a relief bill to soften the economic shock of coronavirus.

The Trump administration is planning to send $US1,000 ($1,670) cheques to Americans as part of a $US1 trillion ($1.7 trillion) stimulus package to bolster the country's economy.

But the US market resumed a steep slide on Wednesday with even the usual safe-haven assets, such as gold, getting caught in the rout as battered investors looked to unwind their damaged positions, while oil prices tanked to a 18-year low.

"Another remarkable day in what is clearly fin-de-regime," Rabobank's global strategist Michael Every wrote in a note.

"Things have already irrevocably changed and whipsaw market action reflects that this is the case.

"The only issue is how much further they change from here, and hence where markets settle."

Wall Street's main indexes slumped at the open as growing signs of coronavirus damage to corporate America saw Tuesday's sugar high fade fast.

The Dow Jones Industrial Average fell 1,048.69 points or nearly 5 per cent at the open to 20,188.69, while the S&P 500 opened lower by 92.69 points, or 3.7 per cent at 2,436.50. The Nasdaq Composite dropped 432.47 points or nearly 6 per cent.

The declines follow sharp tumbles in Europe where equity indexes in London, Frankfurt and Paris plunged around 5 per cent and Milan slipped around 2 per cent.

Photo: The Dow Jones Industrial Average fell 1,048.69 points or nearly 5 per cent. (AP: Richard Drew)

Brief boost from stimulus packages

Wall Street had enjoyed a brief sugar-high on Tuesday after policymakers cobbled together packages to counter the impact of the virus.

In addition to measures in the US, Britain launched a 330 billion-pound ($666 billion) rescue package for businesses threatened with collapse.

France, which went into lockdown on Tuesday, is to pump 45 billion euros ($74.4 billion) into its economy to help companies and workers.

Still, forecasters at banks are projecting a steep economic contraction in at least the second quarter as governments take draconian measures to combat the virus, restricting movements.

US Senate digs in to formulate 'bolder' relief

Meanwhile, US Senate Majority Leader Mitch McConnell expected the chamber on Wednesday to pass an economic relief bill already approved by the House of Representatives.

Breaking down the latest news and research to understand how the world is living through an epidemic, this is the ABC's Coronacast.

He also said the Senate would then work on legislation aimed at aiding small businesses, giving Americans money directly and helping some industries during the coronavirus crisis.

"So while I will support the House bill in order to secure emergency relief for some workers, I will not adjourn the Senate until we have passed a far bolder package that must include significant relief for small businesses all across our country," he said.

"Everybody understands we aren't leaving until we deliver it."

Senator McConnell said the bill that senators were drafting would provide an "historic injection of liquidity and access to credit" for small businesses, while loosening the bureaucracy for lenders working with the federal government.

The senators are also looking at the "best pathway to put money directly in the hands of the American people … as quickly as possible" and "targeted relief for key industries that are shouldering an outsized burden from the public health directives," Senator McConnell said.

He said the bill will include measures to get "more tools in the hands of healthcare providers, removing barriers to treatment, and helping researchers develop therapeutics and vaccines".

To prevent the spread of the virus amongst themselves, he urged senators to enter the chamber later on Wednesday, vote on the House bill, and then leave so "we don't have gaggles of conversation here on the floor."

Reuters

Topics: health, disasters-and-accidents, infectious-diseases-other, respiratory-diseases, government-and-politics, donald-trump, small-business, business-economics-and-finance, money-and-monetary-policy, united-states, united-kingdom, france, italy, european-union

First posted March 19, 2020 04:32:20