Dow Plunges as Market Falls 10% From Record High

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The Dow Jones Industrial Average rose 78.10 points, or 0.29%, at the open to 27,159.46.

The market's sharp drop this week partly reflects increasing fears among many economists that the US and global economies could take a bigger hit from the coronavirus than they previously thought.

USA stock index futures were mixed on Wednesday after the Dow and the S&P 500 indexes suffered their sharpest four-day fall in more than two years on fears of the economic damage from the global spread of the coronavirus.

More companies including Microsoft and Budweiser maker InBev are warning their results will be hurt.

At 1:09 a.m. ET, Dow e-minis were down 384 points, or 1.43%, while Nasdaq 100 e-minis were down 137.75 points, or 1.56%. It was down more than 780 points, or 2.9%, in afternoon trading. USA health authorities on Wednesday said they found the first case of the illness that does not have ties to a known outbreak.

"The way the market is going down, it's happening pretty quickly, but it's very hard to say that it's over", said Sameer Samana, senior global market strategist for Wells Fargo Investment Institute.

The near 1,200 point drop for the Dow was its largest ever for a single session.

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Hajdu also said that morale has been high amongst quarantined evacuees and that people are just relieved to be back in Canada. The government was considering chartering a commercial flight from Darwin to New Zealand, she said .


The broad-based S&P 500 also slumped 4.4 per cent to 2,978.66, while the tech-rich Nasdaq Composite Index shed 4.6 per cent to 8,566.48.

"However, near term we feel that positioning and valuations are not yet depressed enough and uncertainty on the global growth impact from the coronavirus is likely to remain high", Goldman Sachs said in a note to clients. The 30-year bond last fell 7/32 in price to yield 1.8069%, from 1.798%.

More than 82,000 people have been infected by the virus and the death toll stands at more than 2,800 globally. Saudi Arabia banned foreign pilgrims from entering the kingdom to visit Islam's holiest sites.

Besides a sharply weaker Chinese economy in the first quarter of this year, he sees lower demand for USA exporters, disruptions to supply chains and general uncertainty eating away at earnings growth.

The NYSE Arca Airline index slumped 4.7 per cent on fears about travel disruptions beyond China while the Philadelphia SE Semiconductor index, comprised of China-exposed stocks, tumbled 2.3 per cent.

Markets are pricing a roughly even chance the Federal Reserve will cut interest rates next month and have nearly fully priced in a cut by April.

Netflix was among the few media-related stocks to manage a gain amid the broader undertow.

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