The stomach-turning ride on global financial markets took a dramatic turn Monday, with U.S. stocks plunging the most since 1987 after President Donald Trump warned the economic disruption from the virus could last into summer.

The S&P 500 sank 12 per cent, extending losses as Trump spoke said the economy could fall into a recessoin. Equities opened sharply lower after central bank stimulus around the world failed to mollify investors worried about the damage the coronavirus is inflicting on economies.

The negative superlatives for American stocks are piling up. The S&P wiped out its gain in 2019 and is now down almost 30 per cent from its all-time high. The Dow Jones Industrial Average lost almost 13 per cent, falling 3,000 points to close at at two-year low. The Russell 2000 had its worst day on record, losing more than 14 per cent.

“This is different. The thing that is scarier about it is you’ve never been in a scenario where you shut down the entire economy,” said Steve Chiavarone, a portfolio manager with Federated Investors. “You get a sense in your stomach that we don’t know how to price this and that markets could fall more.”

While the Fed cut rates toward zero and stepped up bond buying, investors continued to clamor for a massive spending package to offset the pain from closures of schools, restaurants, cinemas and sporting events. Companies around the world have scaled back activity to accommodate government demands to limit social interaction

Here are some of Monday’s key moves across major assets:

• All 11 groups in the S&P 500 fell, with eight of them down at least 10 per cent.
• The Dow Jones Industrial Average’s tumble from its record reached 30 per cent.
• Brent crude dipped below US$30 a barrel for the first time since 2016.
• Treasury yields retreated across the curve with moves most pronounced on the short end.
• Shares tumbled in Asia and Europe, where the continent is now reporting more new virus cases each day than China did at its peak as more countries lock down.
• The yen surged, the Swiss franc rallied and the dollar fluctuated.
• Gold failed again to capitalize on the rush to havens and reversed an earlier gain to tumble.
• Bonds declined across most of Europe, where a measure of market stress hit levels not seen since the 2011-2012 euro crisis.

The Fed and other central banks have dramatically stepped up efforts to stabilize capital markets and liquidity, yet the moves have so far failed to boost sentiment or improve the rapidly deteriorating global economic outlook. An International Monetary Fund pledge to mobilize its US$1 trillion lending capacity also had little impact in markets.

The problem is, bad news keeps stacking up. The New York Fed’s regional gauge of factory activity plunged. Ryanair Holdings Plc said Monday it will ground most of its European aircraft while a consultant said the pandemic will bankrupt most airlines worldwide before June unless governments and the industry step in. Nike Inc. and Apple Inc. announced mass store closings.

“In normal circumstances, a large policy response like this would put a floor under risk assets and support a recovery,” Jason Daw, a strategist at Societe Generale SA in Singapore, wrote in a note. “However, the size of the growth shock is becoming exponential and markets are rightfully questioning what else monetary policy can do and discounting its effectiveness in mitigating coronavirus-induced downside risks.”

The yen rebounded from Friday’s plunge after the Fed and five counterparts said they would deploy foreign-exchange swap lines. Australian equities fell almost 10 per cent, the most since 1992, even after the Reserve Bank of Australia said it stood ready to buy bonds for the first time -- an announcement that sent yields tumbling. New Zealand’s currency slumped after an emergency rate cut by the country’s central bank.

Meanwhile, China reported Monday that output and retail sales tumbled in the past two months.

These are the main moves in markets:

Stocks

The S&P 500 fell 11.98 per cent as of 4 p.m. in New York.
The Dow Jones Industrial Average plunged 12.93 per cent
The Stoxx Europe 600 Index lost 4.9 per cent, paring a drop that reached 10 per cent.
The MSCI Emerging Market Index declined 6.3 per cent.
The MSCI Asia Pacific Index decreased 3.7 per cent.

Currencies

The Bloomberg Dollar Spot Index rose 0.2 per cent.
The euro gained 0.5 per cent to US$1.1162.
The Japanese yen strengthened 1.8 per cent to 105.94 per dollar.

Bonds

The yield on two-year Treasuries sank 14 basis points to 0.35 per cent.
The yield on 10-year Treasuries declined 22 basis points to 0.73 per cent.
The yield on 30-year Treasuries declined 22 basis points to 1.31 per cent.
Germany’s 10-year yield climbed seven basis points to -0.47 per cent.

Commodities

West Texas Intermediate crude fell 9.2 per cent to US$29.05 a barrel.
Gold weakened 4.3 per cent to US$1,463.30 an ounce.
Iron ore sank 2.5 per cent to US$86.10 per metric ton.