US STOCKS-Wall St pounded as WHO deems COVID-19 outbreak a pandemic

Published 11/03/2020, 20:02
Updated 11/03/2020, 20:09
© Reuters.  US STOCKS-Wall St pounded as WHO deems COVID-19 outbreak a pandemic

(For a live blog on the U.S. stock market, click LIVE/ or

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* White House orders coronavirus meetings classified

* Boeing sees biggest 3-day drop since 9/11 aftermath

* Rate-sensitive U.S. banks tumble

* Indexes down: Dow 5.55%, S&P 5.06%, Nasdaq 4.93%

(Updates to late afternoon, changes dateline, byline)

By Stephen Culp

NEW YORK, March 11 (Reuters) - Wall Street plunged on

Wednesday, bringing the stock market closer to bear market

confirmation after the World Health Organization said it now

considers the COVID-19 outbreak a pandemic.

Market participants were further rattled following a Reuters

report that the White House had ordered top-level coronavirus

meetings to be classified. "I see a bear market being confirmed but I don't think it's

going to last," said Robert Pavlik, chief investment strategist,

senior portfolio manager at SlateStone Wealth LLC in New York,

referring to a market drop of more than 20%. "There's so much

uncertainty it's hard to say but my feeling is this too will

pass."

All three U.S. stock averages sank, midway through a week

whipsawed by news about coronavirus developments and economic

stimulus hopes.

The benchmark S&P 500 index and the Nasdaq were last about

19% below the record closing highs reached on Feb. 19.

A lack of details from the Trump Administration regarding

its plans for fiscal stimulus, and partisan wrangling in

Washington, added further unknowns to the mix. "There were a lot of ideas floated from the White House but

without any clarity of anything coming about from those

discussions, it's not going to help," said Pavlik. "It adds

additional uncertainty to a very uncertain market."

Boeing Co BA.N was the biggest drag on the blue-chip Dow,

sinking 14.9% after announcing plans for a full drawdown of an

existing $13.8 billion loan as early as Friday. The planemaker

is on course for its biggest three-day fall since the aftermath

of the Sept. 11, 2001 attacks.

Stocks worldwide lost ground despite global stimulus efforts

to soften the economic blow of the virus, named COVID-19, with

Britain and Italy announcing war chests to contend with the

growing crisis. Concerns over the fast-spreading virus, named a pandemic by

the World Health Organization (WHO) on Wednesday, have ravaged

markets and hobbled supply chains as countries around the world

grapple with how to contain both the virus and its economic

impact. As part of those efforts, the U.S. Federal Reserve is widely

expected to cut interest rates for a second time this month at

the conclusion of a two-day monetary policy meeting next week.

The Dow Jones Industrial Average .DJI fell 1,388.36

points, or 5.55%, to 23,629.8, the S&P 500 .SPX lost 145.7

points, or 5.06%, to 2,736.53 and the Nasdaq Composite .IXIC

dropped 411.69 points, or 4.93%, to 7,932.56.

All 11 major sectors in the S&P 500 were trading sharply

lower.

Rate-sensitive banking stocks .SPXBK were down 5.7% as

U.S. Treasury yields dropped. Nike Inc NKE.N fell 5.3% on fears of virus-related sales

slump in China.

Declining issues outnumbered advancing ones on the NYSE by a

13.66-to-1 ratio; on Nasdaq, a 7.96-to-1 ratio favored

decliners.

The S&P 500 posted no new 52-week highs and 99 new lows; the

Nasdaq Composite recorded 6 new highs and 605 new lows.

S&P 500 sector performance https://tmsnrt.rs/2VPkNLd

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