Traders work on the floor at the New York Stock Exchange, August 5, 2019.
Brendan McDermid | Reuters
Dow Jones Industrial Average drops 879 points
The Dow dropped 879.44 points, or 3.15%, to 27,081.36. The S&P 500 slid 3.03% to 3,128.21. The Nasdaq Composite fell 2.77% to 8,965.61. Wall Street added Tuesday to its massive sell-off from the previous session as fears of a slowdown in economic growth intensified.
10-year yield dives to record low
Investors rushed out of stocks and loaded up on U.S. Treasurys, pushing the 10-year yield down to its all-time low. Stocks fell even as top White House economic advisor Larry Kudlow maintained that the coronavirus was contained so far in the U.S. and that economic growth had yet to be significantly affected. Bottom line: Stocks will remain under pressure if the number of confirmed cases keep rising or if the economy data starts showing a significant deterioration from the virus.
Banks tumble, ‘FAANG’ falls
Bank of America and Citigroup fell 5.04% and 4.27%, respectively, as the big banks were under pressure from falling bond yields. The so-called FAANG stocks — Facebook, Amazon, Apple, Netflix and Google-parent Alphabet — all dropped at least 1.80%.