Traders work on the floor of the New York Stock Exchange, January 27, 2020.
Dow Jones Industrial Average tanks 2,352 points
The Dow plummeted 2,352.60 points, or 9.99%, to close at 21,200.62. The S&P 500 dropped 9.51% to 2,480.64 The Nasdaq Composite fell 9.43% to 7,201.80. Stocks got roiled again on Thursday as the U.S. government failed to assuage fears of the coronavirus outbreak denting economic growth.
S&P 500 joins Dow in bear market
The S&P 500 closed Thursday’s session in a bear market, joining the Dow in trading more than 20% below a record high set last month. On Wednesday night, President Donald Trump announced the administration would provide financial relief for workers who are ill, caring for others due to the virus or are quarantined. However, these moves were not specific enough for investors who were looking for a more robust fiscal response to curb potentially slower economic growth stemming from the coronavirus. Bottom line: Wall Street wants a substantial fiscal stimulus package to fend off a pronounced economic downturn. Otherwise, expect stocks to keep falling.
Travel stocks plummet, ‘FAANG’ slides
What happens next?
Investors will be on the lookout once again for more substantive fiscal measures to cushion the economic blow from the coronavirus. Consumer sentiment numbers are also set for release at 10 a.m.
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