Dow drops 300 points, stocks head for losing week as coronavirus fears resurface


Shares fell sharply on Friday following the selection of new coronavirus cases escalated, fueling worries over a pronounced global economic slowdown.

The Dow Jones Industrial Typical traded 316 points lessen, or 1.1%, to crack beneath 29,000 for the first time due to the fact Feb. 10. The S&P 500 slid 1.1% even though the Nasdaq Composite declined by 1.6%. 

Friday’s losses place the key averages on pace for their very first weekly losses in a few months. The Nasdaq is down roughly 1.3% 7 days to date. The Dow and S&P 500 are the two down at least 1.3% for the 7 days. 

Microsoft and Nike fell much more than 2% every single to direct the Dow lessen. The S&P 500 was pressured by a 2% drop in the tech sector. Facebook, Amazon, Netflix, Google-parent Alphabet and Apple all traded at the very least 1.2% decrease to drag down the Nasdaq decrease. 

China’s Nationwide Well being Commission noted extra than 75,00 confirmed scenarios and in excess of 2,000 deaths on the mainland. A lot more than 800 new circumstances have been documented in China overnight. South Korea claimed 52 new situations on Thursday to choose its overall to 150.

“Even if the outbreak recedes, global expansion is nonetheless set to drop to zero in the 1st quarter, just before bouncing back again over the remainder of the 12 months,” Peter Berezin, chief international strategist at BCA Exploration, explained in a notice. “Thus, a around-term strike to corporate earnings now appears to be like unavoidable.”

Traders perform on the ground at the New York Stock Trade, January 14, 2020.

Brendan McDermid | Reuters

The distribute of the virus is presently having its toll on the Chinese financial system. Facts from the China Passenger Car or truck Association confirmed auto profits plummeted by 92% in the to start with two months of February. Some U.S. firms, together with Apple, have also warned this week about achievable income headwinds because of to the virus. 

IHS Markit also mentioned activity in the U.S. solutions sector strike its least expensive level in much more than 6 several years, noting self confidence was “subdued” to the coronavirus. 

Traders plowed funds into secure havens these kinds of as Treasurys and gold on Friday. The 30-calendar year Treasury bond generate hit a document small, breaking underneath 1.9%. Yields go inversely to charges. Gold hit a fresh seven-calendar year higher, getting 1.7% to $1,647.40.

U.S. shares are coming off a adverse session pushed by a unexpected midday market-off which confounded traders and introduced markets back from former file highs. The Dow also notched its fourth drop in five classes.

“Marketplaces experienced their first real ‘shot across the bow’ in a few months time, with a sudden swift pullback to multi-working day lows, which was significant enough to result in some speedy purchasing of volatility,” stated Mark Newton, controlling member at Newton Advisors. “Nonetheless breadth was in no way down that much even at the peak of intraday losses, and ended up constructive on the working day.”

In corporate news, Deere shares popped much more than 6% on quarterly earnings that conquer analyst anticipations. Dropbox soared additional than 22% right after posted a earnings that topped estimates.

—CNBC’s Elliot Smith contributed to this report.



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