GVSU expert discusses the impact of the trading halt on Wall Street and what it means for the economy

There was a 15-minute trading halt on Wall Street March 9 after the market plummeted by more than 2,000 points in a situation sparked, in part, by fears about the spread of COVID-19 (coronavirus).

Paul Isely, associate dean and professor of economics, said trading halts are designed to prevent panic selling. 

"The longer you have uncertainty, the more the angst about that uncertainty builds up," Isely explained. "People will start to perceive the worst possible outcome."

Isely said the dramatic fall in Monday's trading can be attributed to two things: the appearance that the coronavirus is spreading across the U.S. and Europe, and the massive drop in oil prices because of a battle between Saudi Arabia and Russia as to how to cut back production enough to keep prices higher.

He said it's clearer that an economic slowdown will continue to build, pushing the economy into a mild recession, unless the virus begins to die out in the near future.

GVSU updates on COVID-19 can be found at gvsu.edu/coronavirus