Dow Goes Negative on Year Due to Virus Fears - InvestingChannel

Dow Goes Negative on Year Due to Virus Fears

Stocks tanked on Monday after more cases of the coronavirus were confirmed over the weekend, ratcheting up worries over the virus’ impact on the world economy.

The Dow Jones Industrials stumbled 453.93 points, or 1.6%, to 28,535.80, wiping out the average’s gains for the year.


The 30-stock average also notched its biggest one-day fall since October along with its longest losing streak since August.


The S&P 500 slumped 51.84 points, or 1.6%, at 3,243.63, snapping a 74-session streak without a 1% decline.


The NASDAQ slouched 175.60 points, or 1.9%, to 9,139.31, the index’s worst day since August.


There are 2,862 confirmed cases so far in China and the death toll in China has risen to 81. The World Health Organization’s director-general is traveling to China to meet with government and health officials. In the U.S., the fifth case of coronavirus was confirmed over the weekend.


Airline stocks United and Delta both dropped more than 3.3%. American slid 5.5%. Gaming stocks such as Las Vegas Sands dropped 6.8% and Wynn Resorts declined 8.1%. MGM Resorts slid 3.9%.


Travel stocks Expedia, Carnival and Marriott International all pulled back at least 2.1%. Consumer shares with exposure to China such as Apple, Disney, Nike, and Estee Lauder all dropped at least 1.8%.


Caterpillar, a bellwether for global growth, fell 3.3% while Nvidia and Micron Technology fell more than 4% each while AMD dropped 2.2%.


Elsewhere, American Express shares fell 3.1% after an analyst at Stephens downgraded them to equal-weight from overweight. The analyst also trimmed his price target on the stock, citing a stretched valuation.


Prices for the 10-Year U.S. Treasury leaped, lowering yields to 1.60% from Friday’s 1.69%. Treasury prices and yields move in opposite directions.


Oil prices fell $1.35 to $52.84 U.S. a barrel.


Gold prices gained $9.90 to $1,581.80 U.S. an ounce.

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