Dow Jones falls 2% as US stocks sell-off deepens on coronavirus fears

A sell-off on Wall Street accelerated Tuesday afternoon as the Dow slumped more than two percent on mounting worries over the coronavirus.

Near 1845 GMT, the Dow Jones Industrial Average stood at 27,390.27, down 2.0 per cent or about 570 points.

The broad-based S&P 500 shed 1.9 per cent to 3,165.03, while the tech-rich Nasdaq Composite Index dropped 1.7 per cent to 9,067.84.

Tuesday's declines add to the toll after major indices slumped more than three percent Monday in a rout precipitated by the spread of the virus beyond China. The declines came as US companies cited potential coronavirus impacts, including less spending from tourists and supply chain problems.

"Bit by bit, US investors are seeing the prospects for global growth diminish," said Gregori Volokhine of Meeschaert Financial Services.

"With the news of the last three or four days, it's hard to be optimistic." Mastercard slumped 5.3 per cent as it forecast that first-quarter sales growth would be two to three percentage points below its prior projection due to the hit to cross-border traffic and e-commerce from the coronavirus.

Macy's dropped 4.9 perc ent as it warned that the coronavirus was a concern to its supply chain and sales from overseas tourists. But company executives said it was too soon to estimate any hit from the outbreak.

United Airlines shed 6.0 per cent as it withdrew its full-year profit forecast, citing uncertainty from the virus. United has lost 100 per cent of its near-term travel demand to China and about 75 per cent of demand to the rest of its trans-Pacific routes.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel