Mounting Coronavirus Fears Triggers Brutal Stock Sell-Off; Dow's Biggest Point Drop Ever
SAN JOSE (CBS SF) -- The coronavirus pandemic's effect on the economy triggered a major sell-off Monday on Wall Street, where the Dow Jones Industrial Average dropped nearly 1,000 points in the final hour of trading to drop just short of 3,000 points for the day, the Dow's worst point drop in history.
When the dust cleared, the Dow industrials took a 2,999-point nosedive, falling to 20,188.52, its lowest level in nearly three years. The losses were mirrored on the NASDAQ and included the tech giants of the Silicon Valley: Apple shares lost $35.76 a share to $242.21. Facebook tumbled $24.27 a share to $146.01.
An emergency interest rate cut by the Federal Reserve did little to soothe the market and may have had the opposite effect, with investors worried the emergency measures means the economy is worse off than has been touted.
Google/Alphabet, whose Verity division launched its anticipated coronavirus pre-screening website Sunday night for Santa Clara and San Mateo counties, saw its shares drop by $141.27 to $1,073.
Amazon shares lost $95.85 to $1,689.15. Even streaming giant Netflix, which would appear to be headed toward higher download numbers as people are forced to stay in their homes, saw a drop. Its shares fell $37.46 to $298.84.
On Monday, seven Bay Area counties have ordered residents to shelter-in-place and President Donald Trump told the nation there was no clear end to the current crisis.
Back on Wall Street, even for a market beset by volaility in recent weeks, the losses were staggering. The 12.9% drop in the Dow was its worst since 1987.
The Federal Reserve announced a new round of emergency actions late Sunday to prop up the economy and get financial markets running smoothly again, but the moves may have raised fears even further. Investors are also waiting for the White House and Congress to offer more aid to an economy that's increasingly shutting down by the hour.
