The S&P 500 was down about 27% from its mid-February
record high, or over $7 trillion in market value, and economists have cut their
forecasts for U.S. GDP, with Morgan Stanley now predicting a 38% contraction in
the second quarter.
At 3:00PM ET, the Dow Jones Industrial Average fell 365.26 points, or 1.71%, to 21,048.18, the S&P 500 lost 43.38 points, or 1.72%, to 2,483.52 and the Nasdaq Composite dropped 135.09 points, or 1.8%, to 7,352.22.
However the CBOE market volatility index , also known as Wall Street’s fear gauge fell 1.9 points. And while the small cap Russell 2000 index was down 4% on the day the Russell volatility index was essentially flat on the day.
Of the S&P 500’s 11 major sectors utilities and financials were the biggest laggards with declines of more than 3%.
Walt Disney Co shares fell 3% after it said it would furlough some U.S. employees this month, while sources said luxury retailer Neiman Marcus was stepping up preparations to seek bankruptcy protection.
Analysts expect corporate profits to fall in the upcoming earnings season, but some strategists said that actual numbers will likely be given little importance.
Raytheon Technologies Corp, formed by the merger of United Technologies and Raytheon Co, shed 10.2% as it pulled its 2020 outlook for its aerospace units.
Tesla Inc rose 5% after the electric-car maker said production and deliveries of its Model Y sport utility vehicle were ahead of schedule.
Declining issues outnumbered advancing ones on the NYSE by a 4.50-to-1 ratio; on Nasdaq, a 3.11-to-1 ratio favored decliners.
The S&P 500 posted no new 52-week highs and 10 new lows; the Nasdaq Composite recorded 4 new highs and 166 new lows.
Source: Saudi Press Agency