OVERVIEW
MANAGEMENT
PERFORMANCE
POSSIBILITIES
CAPITALS
ACTIVITIES
ACTORS
BURGESS
Coronavirus Crisis | ||
|
Burgess COMMENTARY Peter Burgess | ||
Dow plunges more than 1,300 points as coronavirus sends stocks reeling
The Dow Jones Industrial Average tumbled Wednesday, closing down by more than 1,300 points or 6.28%, in another day of massive volatility over the novel coronavirus crisis. The S&P 500 fell 5.17% and the Nasdaq slipped 4.7% by the time the markets closed. Trading was briefly halted just before 1 p.m. after the S&P 500 dipped below the 7% threshold. 'I think what we're seeing today and in recent weeks is a market that has nothing to ... steady it. The economic data won't show anything positive for quite a while and markets can't really give any credible outlook on earnings right now,' Jeffrey Kleintop, the chief global investment strategist at Charles Schwab, told ABC News. 'While the markets may bounce on news of new stimulus like it did yesterday, it's unlikely to bottom until we see that peak in new virus cases, so we just don't know when that will be,' Kleintop noted. He added that 'we are very likely in a recession already, but we just don't know the depths.' But when the 'shock begins to recede, growth should come back fairly quickly,' he said. The Dow at one point was trading at the same level when President Donald Trump took office in January 2017. It has already been a roller-coaster week for equity markets as the novel coronavirus crisis continues to sow massive uncertainty on the global economy. On Monday, the Dow suffered its worst day since the 'Black Monday' crash of 1987, dropping nearly 3,000 points or 12.94%. On Tuesday, however, the index rebounded more than 1,000 points, or over 5%, as Trump administration officials touted a major stimulus package. 'When there is an event that leads to selling, such as coronavirus uncertainty, it catapults into more selling,' David Bahnsen, the chief investment officer of the Bahnsen Group, said in a commentary Wednesday. 'This creates downward pressure on almost all assets, including good assets.' He continued, 'All of the panic and margin selling eventually runs its course. It's an incredibly bad time for people who don't have to sell to be selling -- because they areselling into an avalanche.' Report a correction or typo RELATED TOPICS: abc newsnational Copyright © 2020 ABC News Internet Ventures.
By CATHERINE THORBECKE
| The text being discussed is available at | https://abc7ny.com/dow-plunges-more-than-1300-points-as-coronavirus-sends-stocks-reeling/6024277/ and |