Dow drops 1,400 points and is now on pace to close in a bear market, down 20% from its record
The coronavirus-induced sell-off reached a new low on Wednesday as Wall Street grappled with the rapid spread of the virus as well as uncertainty around a fiscal response to curb slower economic growth from the outbreak.
The Dow Jones Industrial Average traded 1,400 points lower, or 5.6%, and was 20% below its record high set earlier last month. A 20% decline is considered a bear market on Wall Street. The S&P 500 is 19.2% from its closing record and traded 5.1% lower on the day.
“We can see the panic in the equity market,” said Jerry Braakman, chief investment officer of First American Trust. “The big question for most people is, are we at the bottom yet? I think we’re only about halfway there.”