US STOCKS-Wall Street tumbles as U.S. virus cases pass 100,000

* U.S. House approves $2 trillion aid package
* Banks stocks fall, tracking Treasury yields
* Boeing set to snap four-day stellar rally
* Indexes: Dow -4.06%, S&P 500 -3.37%, Nasdaq -3.79%

(Updates number of U.S. infections, deaths)
By Noel Randewich
March 27 (Reuters) - Wall Street stocks tumbled on Friday,
ending a massive three-day surge after doubts about the fate of
the U.S. economy resurfaced and the number of coronavirus cases
in the country climbed.
U.S. stocks deepened their losses late in the session, even
after the House of Representatives approved a $2.2 trillion aid
package - the largest in American history - to help people and
companies cope with an economic downturn caused by the
coronavirus outbreak and provide hospitals with urgently needed
medical supplies. The United States has surpassed China and Italy as the
country with the most coronavirus cases. The number of U.S.
cases passed 100,000, and the death toll exceeded 1,500.
"We have still not fully understood the degree of the
economic impact," warned Massud Ghaussy, senior analyst at
Nasdaq IR Intelligence in New York.
"Currently, from a policymaker's perspective, it's a
relative balance between managing the spread of the virus and
opening the economy."
After the market closed, President Donald Trump signed the
stimulus package into law.
The bill, along with unprecedented policy easing by the
Federal Reserve, helped the S&P 500 .SPX surge 10.2% for the
week, its best week since 2009. But the U.S. stock market
benchmark is still down about 25% from its February high.
In its strongest three-day performance since 1931, the Dow
surged 21% in three straight days through Thursday, establishing
it in a bull market, according to one widely used definition.
Even after Friday's drop, the Dow ended 12.8% higher, its best
week since 1938.
Many investors see a strong risk the market could fall
deeply again as coronavirus infections increase and more people
die, however. "Next week will depend on what happens over the weekend,"
said Lindsey Bell, chief investment strategist at Ally Invest.
"If there is a major acceleration over the weekend of
coronavirus cases in New York and other states and the hospital
system continues to get jammed up, then I think it will be a
rough week for the market."
Macroeconomic indicators offered a glimpse of the economic
devastation from the crisis as the lockdown of major cities
upends the lives of millions of Americans.
U.S. consumer sentiment dropped to a near 3-1/2-year low in
March, according to a survey released on Friday, a day after
data showed a record 3 million surge in jobless claims last
week. The Dow Jones Industrial Average .DJI slumped 4.06% to end
at 21,636.78 points, while the S&P 500 .SPX lost 3.37% to
2,541.47.
The Nasdaq Composite .IXIC dropped 3.79% to 7,502.38.
Volume on U.S. exchanges was 13.4 billion shares, its lowest
since March 5, according to Refinitiv data.
Delta Airlines DAL.N , American Airlines AAL.O and United
Airlines UAL.O fell between 6% and 11% as U.S. Treasury
Secretary Steve Mnuchin said the help designated for airlines in
the aid package was not a bailout and that taxpayers would need
to be compensated. Boeing Co BA.N slumped 10%, but was still up more than 70%
for the week, after Mnuchin said the planemaker had no intention
of using federal money.
The banking index .SPXBK fell 4.6%, tracking U.S. Treasury
yields as investors sought safety in high-quality assets.
The energy index .SPNY was the biggest percentage loser
among the 11 major S&P sectors, sliding 6.9%, following a drop
in oil prices.
Declining issues outnumbered advancing ones on the NYSE by a
3.17-to-1 ratio; on Nasdaq, a 2.98-to-1 ratio favored decliners.
The S&P 500 posted one new 52-week high and one new low; the
Nasdaq Composite recorded nine new highs and 39 new lows.