For the sixth straight session, Wall St.’s main indexes plummeted on Thursday, with the S&P 500 confirming its fastest correction in history as the rapid global spread of coronavirus intensified worries about economic growth. The S&P 500 finished 12% below its Feb. 19 record close, marking its fastest correction ever in just six trading days.
The previous record was nine days in early 2018, according to S&P Dow Jones Indices analyst Howard Silverblatt.
The Dow registered a record one-day points drop, which was also its fourth 1,000-point decline in history and the second this week.
All three major U.S. indexes were also on track for their steepest weekly pullback since the global financial crisis, as new infections reported around the world surpassed those in mainland China.
The Dow Jones Industrial Average fell 1,190.95 points, or 4.42%, to 25,766.64, the S&P 500 lost 137.63 points, or 4.42%, to 2,978.76 and the Nasdaq Composite dropped 414.30 points, or 4.61%, to 8,566.48. The Dow ended 12.8% below its Feb. 12 record close and Nasdaq closed 12.7% under its Feb. 19 closing peak.
Microsoft Corp, the biggest drag on the S&P, dropped almost 7% after it warned of weakness in PC business due to a hit to its supply chain from the coronavirus, echoing similar statements from Apple Inc and HP.
MacDailyNews Take: Two quotes regarding this Wall St. correction over the COVID-19 coronavirus:
• People tend to fear the worst. It almost never happens. – MacDailyNews, May 14, 2019
• Be fearful when others are greedy. Be greedy when others are fearful. — Warren Buffett