The ASX 200 has now lost about one quarter of its value — more than half a trillion dollars — since its record high of 7197 points just three weeks ago.
The 7.36 per cent loss was the worst drop since the global financial crisis in 2008.
In the past week, the ASX 200 has fallen a staggering 16 per cent.
A Melbourne-based Bell Potter stockbroker said the day of trade was “pandemonia”.
“You’ve got people selling and panicking; there are massive, systemic reasonings,” he said.
“The first is what’s happened today — when the WHO characterised the coronavirus as a pandemic, that’s the total reason.
“Then Trump suspended people coming from Europe for 30 days, apart from the UK, which the American psyche doesn’t like.
“Scott Morrison came out with the initial part of his package, and there are people bleeding everywhere and they’re so reliant on a functioning economy.
“People working in travel are cancelling their trips, people are being made redundant all over the country — everyone will flock down to the supermarkets and buy up big.
“Until they work out the future of travel bans … people won’t stop volatility.”
The ABC reported the rising cost of coronavirus and the share market crash had banks and government looking at stimulus measures.
It said despite the UK Government announcing its own stimulus plan, the European stock markets fell deeper into the red.
The Australian dollar also continued its downward trajectory, dropping to around 64.58 US cents
At its lowest point, the ASX 200 fell nearly eight per cent — the worst one-day fall since the collapse of US investment bank Lehman Brothers.
It was a sea of red in Asia as well, with Japan's Nikkei index falling four per cent.
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