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Dow Jones and S&P 500 Dip 3% Tuesday Posting Four Consecutive Days of Losses

The Dow and the S&P 500 skidded 3% Tuesday in their four consecutive days of losses as the coronavirus spread further worldwide, and traders dumped risky assets as they struggled to gauge the economic impact.

Dow Jones and S&P 500 Dip 3% Tuesday Posting Four Consecutive Days of Losses

Both averages posted their biggest four-day percentage losses since the huge sell-off in December 2018, while U.S. 10-year Treasury yields reach a record low.

The S&P 500 shed $2.138 trillion in market capitalization over the last four sessions, based on S&P Dow Jones Indices analyst Howard Silverblatt.

Fears of an outbreak intensified after the coronavirus spread to Spain, and dozens of nations, from South Korea to Italy, accelerated emergency measures while Iran’s virus death figures rose to 16, the highest outside China.

While investors had hoped the economic influence of the virus would be curbed to the first quarter, Cruz stated many are now predicting that “it’s going to influence the first half of 2020 and probably beyond.”

The Nasdaq settled the session 8.7% below its record closing high, reached last Wednesday, while the S&P finished 7.6% below its record close realized the same day. A total of 314 of the benchmark’s 500 shares had been in correction area, historically viewed as a 10% fall from their high.

In the busiest trading session since December 21, 2018, volume on U.S. exchanges was 12.24 billion shares, in contrast with the 7.99 billion average for the full session over the past 20 trading days.