The New Normal? Volatile Dow Takes Another Near-1,000 Point Plunge, Wipes Out Wednesday’s Gains
The Dow Jones Industrial Average has dropped 976 points in afternoon trading, completely wiping out Wednesday’s impressive gains.
At 0.9%, the 10-year Treasury note also fell to an all-time low, while all 30 Dow components were in the red, the S&P 500 dropped 3.5% and the Nasdaq Composite fell 3.1%.
Markets have been consistently volatile in response to the spreading coronavirus. Fears regarding the outbreak currently hold a tight grasp on Wall Street, as countries continue to place travel restrictions.
At nearly 1,200 points, Wednesday marked the Dow’s second-biggest point gain, but bank and airline stocks propelled a decline into Thursday’s close.
CNBC noted, “The tumbling yields kept pressure on bank stocks, which led the major indexes lower. JPMorgan and Bank of America both dropped nearly 5%. M&T Bank fell 5.1% and Fifth Third sank 4.9%.”
Their report added, “Airline stocks also took a huge beating, leading the declines in the Dow Jones Transportation Average, which hit bear market levels Thursday. United Airlines cratered 9%, while American Airlines tanked more than 10%, on pace for its worst day since 2016.”
There has been a notable increase in coronavirus cases this week, as California has declared a state of emergency with 53 confirmed cases in the state, and New York’s count has double overnight. Ten people have also died in Washington State, and roughly 20 cruise ship-goers are also showing symptoms.
