Dow Drops 1,000 Points For The Third Time This Week Amid Coronavirus Fears
The Dow Jones Industrial Average tumbled another 1,000 points on Friday, marking the third day this week that stocks dropped over the coronavirus and its potential impact on the economy.
CNBC reported that the Dow fell more than 4 percent, the S&P 500 also dropped 4 percent, and the Nasdaq Composite was down 3 percent.
“The major averages were under pressure on Friday in part because investors kept adding to their bond-market exposure and fleeing equities. The benchmark U.S. 10-year Treasury yield touched a fresh record low. It was last at 1.16%. Yields move inversely to prices,” the news outlet reported.
The Dow previously dropped almost 1,200 points on Thursday, marking its biggest single-day point drop in history.
“The reason it happened so quickly is because the momentum going up was so great,” said Charles Schwab chief investment strategist Liz Ann Sonders. “The hedge funds, the algorithmic trading, the quants: They play on momentum.”
CNBC reported that coronavirus concerns also led a handful of companies to issue earnings and revenue warnings, including Microsoft and Paypal, both of which warned about outlooks this week.