Wall Street added to losses on Tuesday with its three major stock indexes falling 1%, after officials said the coronavirus was "a rapidly escalating epidemic," a day after virus worries sent the S&P 500 and the Dow Industrials to their biggest daily declines in two years. While US stocks started the session in positive territory, those gains were erased as investors, focused on the potential economic impact of the outbreak, noted it had spread to new countries including Spain.
US stock indexes were on track for a fourth day of losses, with fears of a pandemic knocking off more than 3% on Monday after a flare-up of infections in several countries.
As of Monday's close, the S&P 500 and the Dow Jones Industrials had erased their gains for the year-to-date.
"A lot of people who have been woken up by the volatility of the stock market will start to get a little panicky," said Tom Plumb resident of Plumb Funds in Madison, Wisconsin.
At 11:11 a.m. ET, the Dow Jones Industrial Average fell 275.4 points, or 0.98%, to 27,685.4, the S&P 500 lost 31.87 points, or 0.99%, to 3,194.02 and the Nasdaq Composite dropped 101.72 points, or 1.1%, to 9,119.56.
Of the S&P's 11 industry sectors, consumer staples, up 0.1%, was the sole gainer while energy was the biggest laggard with a 1.8% dip.
Last week, positive fourth-quarter corporate earnings and hopes of limited damage from the virus outbreak had pushed Wall Street to record highs.
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