Traders work on the floor of the New York Stock Exchange March 12, 2020.
Brendan McDermid | Reuters
Dow Jones Industrial Average drops 1,861 points
The Dow slid 1,861.82 points, or 6.9%, to close at 25,128.17. The S&P 500 dropped 5.89% to 3,002.10. The Nasdaq Composite fell 5.27% to 9,492.73. Stocks plunged amid concerns over the economic recovery while coronavirus-related hospitalizations in certain states grew.
Worst day since March
Texas has reported three consecutive days of record-breaking Covid-19 hospitalizations. Nine California counties are reporting a spike in new coronavirus cases or hospitalizations of confirmed cases, AP reported Wednesday. This — coupled with a grim economic forecast from the Federal Reserve — sparked the Dow and S&P 500’s biggest sell-offs since March. “You’re seeing the psychology in the market get retested today,” said one trader.
Reopening trade tanks
Shares of companies that have benefited from expectations of the economy reopening led the way lower. American and Delta Air Lines fell 15.51% and 14.03%, respectively. Gap and Kohl’s both dropped more than 8%. Carnival shares plunged 15.3%.
What happens next?
Consumer sentiment and import data are set for release Friday.
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