US stocks tumbled on Thursday, with shares of banks and travel companies taking a beating, as a new wave of fear about the spread of the coronavirus and its economic impact gripped investors just one day after election results powered a rally. The major indexes fell over 3 per cent. On Wednesday the market tallied huge gains following moderate Joe Biden’s success in the Super Tuesday primaries for the Democratic presidential nomination.
The coronavirus has led to more than 3300 deaths worldwide. In the US, new cases of the vast-spreading virus were reported on Thursday around New York and in San Francisco. In the latest developments, Alphabet Inc’s Google joined other big tech firms in recommending employees in the Seattle area work from home.
The Dow Jones Industrial Average fell 969.58 points, or 3.58 per cent, to 26,121.28, the S&P 500 lost 106.18 points, or 3.39 per cent, to 3023.94 and the Nasdaq Composite dropped 279.49 points, or 3.1 per cent, to 8738.60. The benchmark S&P 500 ended down more than 10 per cent from its Feb. 19 closing high, after last week logging its biggest weekly percentage decline since October 2008.
The financial sector dropped 4.9 per cent as the continued fall in Treasury yields weighed on rate-sensitive bank shares. The yield on the 10-year Treasury note fell to 0.91 per cent. Shares of JPMorgan Chase dropped 4.9 per cent and Bank of America Corp slid 5.1 per cent.Morning-Market-Note-Friday-6th-March