US stocks tumble most in 12 weeks amid economic jitters and coronavirus uncertainty
- The Dow Jones slumped 7.1 per cent on Thursday amid uncertainty over virus, with all 30 blue-chip companies dropping
US stocks tumbled the most in 12 weeks as the torrid surge in equities came to a screeching halt amid economic jitters. Treasuries surged.
The Dow Jones Industrial Average slumped as much as 7.1 per cent on Thursday, with all of its 30 blue-chip companies dropping. Meanwhile, the S&P 500 sank almost 6 per cent – approaching the 7 per cent threshold that would trigger an exchange-mandated trading pause.
Airlines, cruise operators and travel shares that soared in recent weeks bore the brunt of the selling. The KBW Bank Index of financial heavyweights plunged 9 per cent, and energy shares joined a rout in oil. Treasury 10-year yields fell to as low as 0.65 per cent, while the dollar jumped.
While much of the equity selling owed to the frantic pace of the recent rally, sentiment did sour as signs mounted that a possible second wave of the pandemic could be taking hold in some states. US jobless claims remained high, underscoring the longer-term challenges caused by the pandemic.
The report came out a day after the Federal Reserve provided a dour economic outlook. Treasury Secretary Steven Mnuchin said the US should not shut down the economy again even if there is another surge in coronavirus cases.