The Dow dropped 700 points on Wednesday amid growing fears that the sudden spikes in COVID-19 cases could delay the economy from rebounding as quickly as some had hoped.
The Dow Jones industrial average index of blue-chip stocks ended the day down 710.16 points, or 2.7 percent, to 25445.94, while the S&P 500 fared only slightly better — plunging 80.96 points, to 3050.33, a drop of 2.59 percent. Not a single sector on the S&P escaped the carnage.
Even the tech-heavy Nasdaq — filled with stocks largely believed to be more immune to COVID-19 woes — fell 2.19 percent, a loss of 222.2 points, ending a nine-day winning streak.
Wednesday marked the second highest one-day rise in infection rates, which threatens has resulted in the European Union mulling a proposal to ban US travel to Europe.
“Investors are clearly anxious about new cases,” said Jason Ware, chief investment officer at Albion Financial Group. “Another surge could impact the reopening of the economy and the recovery.”