(NEW YORK) — The Dow Jones Industrial Average plunged more than 1,100 points at Wednesday’s opening, marking another day of volatility on Wall Street as the novel coronavirus crisis continues to sow massive uncertainty on the global economy.
The S&P 500 and Nasdaq both fell approximately 5% Wednesday morning.
Premarket trading was temporarily halted for futures on the Dow after it tumbled past its “limit down” threshold.
It has already been a roller-coaster week for equity markets. On Monday, the Dow suffered its worst day since the “Black Monday” crash of 1987, dropping nearly 3,000 points or 12.94%. On Tuesday, however, the index rebounded more than 1,000 points, or over 5%, as Trump administration officials touted a major stimulus package.
“When there is an event that leads to selling, such as coronavirus uncertainty, it catapults into more selling,” David Bahnsen, the chief investment officer of the Bahnsen Group, said in a commentary Wednesday. “This creates downward pressure on almost all assets, including good assets.”
He continued, “All of the panic and margin selling eventually runs its course. It’s an incredibly bad time for people who don’t have to sell to be selling — because they are selling into an avalanche.”
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