Dow extends its 2-day sell-off to 1,960 points after CDC tells Americans to brace for possible coronavirus outbreak

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Dow extends its 2-day sell-off to 1,960 points after CDC tells Americans to brace for possible coronavirus outbreak
trader upset red chart
  • US stocks continued their sharp two-day sell-off on Tuesday as the CDC told Americans to brace for a possible coronavirus outbreak.
  • The Dow Jones industrial average has now fallen more than 1,960 points over two days.
  • The torrid decline adds to a more than 1,000-point sell-off in the Dow Jones industrial average on Monday, which erased the index's losses for the year.
  • The S&P 500 also entered the session fresh off its worst day since February 2018.
  • The biggest declines on Tuesday were absorbed by airlines, air freight and logistics, and consumer finance stocks.
  • Visit Business Insider's homepage for more stories.

US stocks plunged on Tuesday as the Center for Disease Control warned Americans of a possible coronavirus outbreak. This added to existing fears that worldwide contagion could cripple global economic growth.

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The Dow Jones Industrial Average fell more than 900 points as intraday lows, posting a decline of as much as 3.3%. The S&P 500 lost 3.2%, and the Nasdaq Composite index declined 2.9% at its weakest levels.

Tuesday's sharp decline continues a vicious sell-off that started on Monday and wiped out more than 1,000 points from the Dow, which saw its year-to-date losses erased. The S&P 500's 3.7% drop on Monday also marked its worst day in two years.

The fast-spreading coronavirus was first diagnosed in Wuhan, China and has now killed 2,700 and infected more than 80,000. Those cases ticked up even rates of new diagnoses fell off in China. Meanwhile major US companies from Apple to Mastercard warned the outbreak could hamper their businesses.

Here are the moves in the major US indices:

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Dow Jones industrial average: Down 768 points, or 2.8% - intraday low down 930 points

S&P 500: Down 3.1% - intraday low -3.2%

Nasdaq Composite: Down 2.2% - intraday low -2.9%

Read more: A hedge fund CEO who specializes in volatility told us why the coronavirus-driven plunge is a game changer - and shares 4 tips for avoiding big losses

Energy companies were the biggest decliners in the S&P 500 on Tuesday, sliding 4.2%. Big drops were also seen in industrials (-3.4%), materials (-3.3%), and financials (-2.9%).

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As risk assets sold off, investors rushed to safety. That pushed the yield on the benchmark 10-year Treasury note to an all-time high on Tuesday.

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