NEW YORK (AP) — The stock market’s current slide hit a big milestone Thursday.
Stock prices are monitored at the New York Stock Exchange, Wednesday, Feb. 26, 2020. (AP Photo/Mark Lennihan)
The S&P 500 has lost more than 10% from its record high as worries have built that a fast-spreading new virus will slam economies and corporate profits around the world. That means stocks just went through a “correction” in the stilted parlance of market watchers.
While that big a drop is scary, corrections are fairly regular occurrences.
Some traders even see them as healthy, helping to eliminate froth that may have built up after a long run higher. But fear is high this correction may worsen into a bear market.
Worldwide markets plummeted again on anxiety about the coronavirus.
The Dow Jones Industrial Average tumbled nearly 1,200 points Thursday, deepening a weeklong global rout caused by worries that the outbreak will wreak havoc on the global economy.
The selloff gave U.S. stocks their worst one-day drop since 2011.
The S&P 500 has now plunged 12% from the all-time high it set just a week ago.
That puts the index in what market watchers call a “correction.”
The index is headed for its worst week since October 2008, during the global financial crisis.
Bond prices soared again as investors sought safe places to park money, sending the yield on the 10-year Treasury to another record low.
More companies, including Microsoft and Budweiser maker InBev, are warning their results will be hurt.
The Dow dove 1,193 points, or 4.4%, to 25,763.
The S&P 500 lost 137 points, or 4.4%, to 2,978.
The Nasdaq fell 414 points, or 4.6%, to 8,566.
The spread of the new coronavirus around the world is jamming up business as companies suspend production, meetings, events and business travel.
Investors continue to shovel money into ultra-safe assets like bonds. More companies including Microsoft and Budweiser maker InBev are warning their results will be hurt.
Some major companies are telling their staff to avoid all business travel.
Frankfurt Airport is offering workers unpaid leave and reduced working hours to make up for the cost of weaker business in passenger and cargo traffic.
Facebook says it is canceling its annual conference for developers because of concerns about the virus outbreak.
The F8 show is usually held in late April or early May in the San Francisco area.
The company says it’s planning alternatives for developers, including live streams, locally hosted events and videos.
More than 5,000 people from around the world attended last year’s F8.
The spread of the new coronavirus has been hitting companies hard as they suspend production, meetings, events and business travel.
Markets are down sharply again, and AB Inbev, the world’s biggest brewer, reported a significant drop in demand in China.
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