Although stocks are off from worst level that they had hit last month, investor’s sentiments turned negative as economic data is pointing troubles for the majority of industries that could lead to massive growth in unemployment and a significant decline in purchasing power.

The latest data indicated that U.S. retail sales posted historic declines last month, and banks are expecting a flood of bad debts.

“If this is a precursor to what we can expect throughout the U.S… there’s no word for it,”

said Quincy Krosby, chief market strategist at Prudential Financial. It

“reflects the complete shutdown of the economy.”

The oil prices extended the declining trend despite the largest oil production cut deal between the OPEC producers and allies.

President Trump, however, indicated that the actual cut would be around 20,000m barrels a day. 

Brent crude oil price plunged to $27.69 a barrel while the US West Texas Intermediate crude oil slipped below the $20 a barrel level, logging its lowest since February 2002. The latest drop is supported by US inventory build of 19m barrels a day.

UK OIL Chart - CFDs on Brent Crude Oil

“The market is showing at near two-decade lows that we need to have more evidence that we’re going to have a huge glut on our hands that will take some time for it to be whittled away before people get aggressively short below $20,”

Gene McGillian, vice president of market research at Tradition Energy in Stamford, Connecticut.

All the major US indices are in the red since the beginning of this week amid the potential threat of recession as the International Monetary Fund is forecasting the biggest recession for the entire world since the Great Depression of the 1930s.

Goldman Sachs anticipates a 35% decline in the second quarter GDP for advanced economies, worse four-time compared to the Great Financial Crisis of 2008.