Dow plunges over 1,000 points as coronavirus cases outside China jump – By Jessica Menton (USA Today) / Feb 24 2020
A sharp rise in coronavirus cases outside of China jolted global financial markets Monday, reviving concerns about the potential economic fallout from the outbreak.
The Dow Jones industrial average plunged 1,031.61 points, or 3.6%, to close at 27,960.80, its biggest one-day point drop since February 2018, when inflation fears rattled investors. It also erased the blue-chip average’s gains for the year.
The Standard & Poor’s 500 slid 3.4% to end at 3,225.89, but is still sitting within about 5% of its record high on Wednesday. The technology-heavy Nasdaq Composite shed 3.7% to end at 9,221.28.
Stocks were pummeled after South Korea reported 231 new cases of the deadly virus Monday, bringing the country’s total to 833 cases. China reported 409 new cases, raising the mainland’s total to 77,150. The 150 new deaths from the illness raised China’s total to 2,592. Elsewhere, a surge in reports of new cases in Iran and Italy raised the prospect of more disruptions.
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“Many investors remain complacent about the far-reaching impact of coronavirus, which is continuing to spread – and a faster pace,” Nigel Green, chief executive and founder of financial consultancy deVere Group, said in a note. “This will inevitably hit financial markets and investors’ complacency leaves many wide open to nasty surprises.”
Monday’s decline battered stocks across most industries, including everything from airlines to technology companies to large financial firms. The sharp drop comes just days after stocks rallied to all-time highs, signaling a potential mood shift as investors looked for safety in havens like gold and U.S. bonds.
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