The stock rout continued on Tuesday as diving bond yields raised more concern that the global economy is slowing significantly because of the spreading coronavirus.
The 10-year Treasury yield hit a record low as the Dow Jones Industrial Average added to Monday’s 1,000-point drop. Comments from health officials warning of a possible outbreak in the U.S. also spooked investors, causing a turnaround in stocks which had opened the day higher. The Dow dropped 879.44 points, or 3.1%, to 27,081.36 after being up more than 180 points at one point shortly after the open. The S&P 500 slid 3% to 3,128.21 while the Nasdaq Composite fell 2.8% to 8,965.61. Monday’s session was the market’s worst in two years.
The S&P 500 posted back-to-back declines of at least 3% for the first time since November 2008 during the financial crisis, according to Bespoke Investment Group. The Dow notched its worst two-session stretch since February 2018 and posted back-to-back losses of at least 800 points for the first time ever.
“Volatility is normal,” said Art Hogan, chief market strategist at National Securities. “What’s scary about this particular drop from the all-time high is it has snuck up on us so quickly in a short period of time.” “When you juxtapose that against a mentality of ‘we don’t know how big this thing can get,’ that makes it feel like it’s a bottomless reaction in the market,” Hogan said.
These declines also put the Dow and S&P 500 more than 7.8% below the record highs reached earlier this month. The Nasdaq closed 8.9% below its all-time high from Feb. 19. Technology stocks such Apple and Facebook have fallen into correction territory, down more than 10% from all-time highs hit just last month.
You can follow us on social media at www.twitter.com/HighlightHwd or on Facebook at: http://www.facebook.com/pages/Highlight-Hollywood/193119760769011
Written By: Tommy Lightfoot Garrett
Photographs are Courtesy: AP
Follow us on Twitter @HighlightHwd or @LightfootinHwd