Dow Closes Down Over 500 Points After Powell Speech

Author:
Publish date:
Video Duration:
47

Stocks dropped on Wednesday after the Federal Reserve's Jerome Powell said the economy may need "additional fiscal support" to avoid lasting damage.

The Dow Jones Industrial Average fell over 500 points and the S&P 500 and Nasdaq both declined as well.

"While the economic response has been both timely and appropriately large, it may not be the final chapter, given that the path ahead is both highly uncertain and subject to significant downside risks," Powell said in a webcast hosted by the Peterson Institute for International Economics in Washington.

Losses were seen in energy, financials, cruise line stocks, and airlines. United Airlines fell 9% while American Airlines slid 5.6% and Delta dropped 7.7%.

There are over 4.3 million confirmed cases of the coronavirus globally and over 294,000 deaths. The U.S. has nearly 1.4 million confirmed cases and over 83,000 deaths. 

Numerous states across the country are beginning to reopen their businesses and loosen rules surrounding social distancing.

Investors are wary of whether these processes are happening too quickly, and of the repercussions should the U.S. get hit with another fast-spreading wave of the coronavirus.

Stocks also finished lower Tuesday after Dr. Anthony Fauci warned that if the country reopens too soon it could lead to “suffering and death” and set back plans to reopen the economy. 

Watch More of the Latest Videos from TheStreet and Jim Cramer