Stocks – Wall Street Selling Intensifies as Virus Volatility Reigns

Published 05/03/2020, 18:48
Updated 05/03/2020, 18:51
© Reuters.

By Kim Khan 

Investing.com - Selling in stocks accelerated midday Thursday, sending the major indexes near the lows of the day as the market remained at the mercy of headlines about Covid-19.

The S&P 500 sank 3.1% and the Nasdaq Composite lost 2.7%. The Dow Jones Industrial Average tumbled 3.1% or 846 points.

The losses reversed a large chunk of Wednesday’s major gains, when enthusiasm about former Vice President Joe Biden’s Super Tuesday showing gave investors an excuse for a healthcare-stock-led rally.

But the one-day-surge-one-day-plunge action is more evidence that Wall Street is still in the dark about how much impact Covid-19 will have on economic activity and corporate bottom lines.

Bonds were back in rally mode, with the 10-Year Treasury yield approaching record lows again at 0.91%.

Airlines, travel sites and other hospitality stocks sank sharply as companies continued to cancel non-essential travel and corporate events and conferences.

Dow component Boeing (NYSE:BA) fell 6% on concerns that the dent in air travel demand would lead to canceled orders at a time the company is vulnerable to do its 737 Max grounding. That drop took more than 115 points off the blue chip index alone.

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