US stocks market entered the bear zone on Thursday as the major indices Dow Jones Industrial Average and S&P500 slumped over 7 per cent, following which trading in the indices stopped for 15 minutes.

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The level-1 circuit breaker has been triggered in the US market for the second time in a week. Dow Jones is currently at 21,856.91, lower 1,696.31 points, 7.20 per cent from its previous close. S&P500 slumped to 2,549.05, lower by 192.33 points or 7.02 per cent. A bear market is a condition when a security price falls 20 per cent or more from its recent highs.

The World Health Organization called the new coronavirus outbreak a pandemic, issuing a grim warning that the global spread and severity of the illness was due to "alarming levels of inaction". The slump continued in the global markets after a similar trend on Wednesday after the WHO declared coronavirus as a global pandemic.

US President Donald Trump has announced that travel from Europe will be suspended for 30 days as part of his government`s response to the coronavirus outbreak. He added that his administration would provide financial relief for workers who are ill, caring for others due to the virus or are quarantined.

However, the decision was not enought to support the investor sentiments. The bear run in stock markets globally has continued off late on concerns of the coronavirus outbreak severely impacting the global economy. It has also raised calls for government intervention and support.

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On Thursday, Indian stock markets also formally moved into the bear zone and the BSE Sensex registered its biggest single-day fall of over 2,900 points. The Sensex closed at 32,778.14, lower by 2,919.26 or 8.18 per cent from its previous close of 35,697.40. The Nifty50 on the National Stock Exchange (NSE) closed 868.25 points or 8.30 per cent lower at 9,590.15.