The move came as the S&P 500 index, which measures the performance of the 500 largest companies in America, plummeted by seven percent.
This triggered a market-wide circuit breaker which caused chaos for traders.
After trading resumed, the Dow Jones Industrial Average lost more than nine percent.
The Dow sunk to 19,230 – meaning the index has now lost all gains since President Trump took office on January 20, 2017.
Markets have been severely affected by the coronavirus outbreak.
As World Health Organisation officials declared Europe as the virus’ epicentre, European stock markets tumbled.
President Trump previously boasted about stock market gains since his election
In his February State of the Union address, he said: “Since my election, US stock markets have soared 70 percent.”
He also stated the market was ““transcending anything anyone believed was possible.”
The three major indices in the United States have continued a downward spiral brought about by reticence surrounding investment during the coronavirus pandemic.
A barrage of poor economic news has turned investors away from the market and increased fees.
Companies and the Government will now be forced to wrestle with difficulties coronavirus has resurrected from past economic downturns.
This is a breaking news story. More to follow…
Published at Wed, 18 Mar 2020 18:33:00 +0000