Stocks continued their rout on Tuesday as diving bond yields raised more concern that the global economy is slowing significantly because of the spreading coronavirus. The 10-year Treasury yield hit a record low as the Dow Jones Industrial Average added to Monday’s 1,000-point drop.
The 30-stock index surrendered earlier gains and had plunged 256.93 points by midday to 27,703.87.
The S&P 500 fell 27.37 points to 3,198.52.
The NASDAQ tumbled 61.25 points to 9,160.03.
These declines put the Dow and S&P 500 more than 6% below the record highs reached earlier this month. The NASDAQ is trading 7.5% below its all-time high from Feb. 19.
Mastercard warned about the potential impact the coronavirus will have on 2020 results, sending their shares down more than 3%.
Investors fled stocks on Monday as a surge in coronavirus cases outside of China intensified fears of a prolonged global economic slowdown.
The Dow sank more than 1,000 points, suffering its biggest point and percentage drop since February 2018. The S&P 500 plunged 3.3%, also the worst drop in two years. With Monday’s declines, the S&P 500 and the Dow both wiped out all of their 2020 gains.
South Korea raised its coronavirus alert to the "highest level," with the latest spike in numbers bringing the total infected to more than 800. Meanwhile, Italy has been the worst affected country outside of Asia, with more than 130 reported cases and seven deaths. Iran also confirmed 12 deaths.
Prices for the 10-Year U.S. Treasury gained, lowering yields to 1.34% from Monday’s 1.37%. Treasury prices and yields move in opposite directions.
Oil prices dropped 96 cents to $50.47 U.S. a barrel.
Gold prices dumped $27.40 to $1,649.20 U.S. an ounce.
