Wall Street Suffers Steepest Drop in Two Years Over Coronavirus Fears
U.S. stocks plummet as surging global coronavirus cases trigger fears of a prolonged economic slowdown. Airlines, chipmakers, and tech stocks lead the massive selloff.
U.S. stocks suffer their worst drop in two years as surging coronavirus cases outside China spark fears of a prolonged global economic slowdown. The Dow Jones Industrial Average plummets over 1,000 points, or 3.56%, while the S&P 500 and Nasdaq Composite both slide more than 3%. This sharp decline completely erases the major indexes' year-to-date gains and marks the Dow's largest point drop since February 2018.
Coronavirus-impacted sectors take the heaviest hits during the trading session. Airline stocks like Delta and American fall more than 6%, while casino operators Las Vegas Sands and Wynn Resorts drop over 5%. Chipmakers, which rely heavily on the global economy, also suffer broad losses, with Nvidia and AMD declining more than 7%, and Apple shares falling 4.8%.
Market analysts note that investors are finally waking up to the reality of China's economic shutdown and its impact on global supply chains. Experts warn that a 10% to 15% market correction may be starting, creating a "sell-first, ask-questions later" environment. Despite the market turmoil, legendary investor Warren Buffett maintains that U.S. business remains healthy overall, just down from a very good level.