Dow plummets 1,200 points before as investors continue to panic over coronavirus fallout
- US stocks fell Wednesday, erasing the prior day's gains as the spreading coronavirus pandemic continues to spur investor panic.
- S&P 500 futures trading was halted in the pre-market after hitting their so-called limit down threshold.
- The sell-off reflects worry that emergency actions from the Federal Reserve and a potential stimulus package from the White House won't be enough to offset the negative economic impact of coronavirus.
- Read more on Business Insider.
US stocks fell Wednesday, erasing Tuesday's gains as volatile trading continued to grip markets. The losses come amid concerns that increased stimulus measures from the White House and additional emergency actions by the Federal Reserve won't be enough to offset the negative economic impact of coronavirus.
The Trump administration said Tuesday it would pursue a massive plan that could total $1 trillion. It's expected to include help for small businesses and industries most impacted by the outbreak. Trump also said it's possible the government will mail checks to Americans within two weeks.
Futures contracts for the S&P 500 again breached so-called limit down levels in pre-market. The benchmark slipped more than 5% immediately after the open, veering towards the 7% threshold that would prompt a 15-minute halt.
Here's where major US indexes stood shortly after the market open at 9:30 a.m. ET on Wednesday:
- S&P 500: 2,403.20, down 5%
- Dow Jones industrial average: 20,003.72, down 5.8% (1,234 points)
- Nasdaq composite: 6,996.44, down 4.7%
"The short-lived gains in global equities of late show that investors remain skeptical about the huge swathes of support measures being rolled out around the world by central banks and governments," Han Tan, an analyst at FXTM, told Business Insider in an email.
He continued: "Unless the coronavirus outbreak can defy expectations and show it will stabilise in the immediate term, investors fear that the current economic trajectory will only point to a dreaded global recession or even something worse."
Elsewhere in markets, oil fell to an 18-year low amid a global price war exacerbated by the coronavirus, which has heavily weighed on demand while OPEC and its allies prepare to boost supply.
