Traders and financial professionals work on the floor of the New York Stock Exchange (NYSE) at the closing bell on October 2, 2019 in New York City.
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Dow Jones Industrial Average plunges 1,031 points
The Dow tanked by 1,031.60 points, or 3.56%, to 27,960.80. The S&P 500 dropped 3.35% to 3,225.89. The Nasdaq Composite fell 3.71% to close at 9,221.28. A jump in coronavirus cases outside of China spooked investors out of stocks in favor of bonds and gold.
Coronavirus cases surge outside of China
South Korea raised its coronavirus alert to the “highest level” over the weekend, with the latest spike in numbers bringing the total infected to more than 800 — making it the country with the most cases outside mainland China. Italy has been the worst affected country outside of Asia so far, with more than 130 reported cases and three deaths. The news sent stocks spiraling lower and safe havens such as gold and Treasurys. Gold prices ripped higher to levels not seen in seven years. The benchmark 10-year Treasury yield fell close to its record lows. Bottom line: Investors are no longer sanguine about a quick recovery from the coronavirus spread.
‘FAANG’ drops, Chipmakers tank
The so-called FAANG stocks — Facebook, Amazon, Apple, Netflix, and Google-parent Alphabet — all closed between 2.99% and 4.75% lower. Nvidia and AMD, meanwhile, fell 7.07% and 7.81%, respectively.
What happens next?