U.S. stock indexes tumbled on Wednesday as investors worried over the absence of immediate measures from President Donald Trump's administration to counter the economic fallout from the coronavirus outbreak.
The Dow Jones Industrial Average fell 4.59%, the biggest decliner among the major indexes, also weighed down by a 10% drop in shares of constituent Boeing Co. The planemaker plans a full drawdown of an existing $13.8 billion loan as early as Friday, a source told Reuters.
Expectations that Trump would announce "major" support measures helped Wall Street claw back losses on Tuesday from a bruising sell-off at the start of the week on the back of a collapse in oil prices. But no concrete measures have been announced.
Meanwhile, the Bank of England became the latest to cut interest rates as central banks and governments roll out measures to battle the economic damage from the virus, which has dented business activity and rattled markets for four weeks now.
The benchmark S&P 500 index is nearly 19% below its all-time peak hit on Feb. 19. If it closes 20% below its record closing high from just three weeks ago, the index would confirm a bear market.
Rate-sensitive U.S. lenders tumbled, with the banks index down 5.5%. The U.S. Federal Reserve is expected to cut rates for the second time this month when it meets next week.
The energy sector dropped about 5.2%, with other major S&P sectors down at least 3%.
At 11:26 a.m. ET, the Dow Jones Industrial Average was down 1,147.39 points, or 4.59%, at 23,870.77, the S&P 500 was down 121.90 points, or 4.23%, at 2,760.33. The Nasdaq Composite was down 318.41 points, or 3.82%, at 8,025.85.
Source : Reuters