Stocks spiraled by midday Wednesday, as coronavirus cases continue to surge in the U.S.
All three major U.S. indices tanked Wednesday, with the Dow Jones Industrial Average and S&P 500 both losing as much as about 3%. The 10-Year Treasury yield fell to 0.7%. In the morning, risk-off sentiment was the theme, but not as harshly, as the S&P 500 was down 0.7% and the 10-Year Treasury yield was flat at 0.71%.
The 5-day moving average of daily new coronavirus cases in the U.S. hit 34,000 Wednesday, according to Johns Hopkins data. That level was last seen in late April. Just about a month ago, the trend was at 17,000. News also broke that visitors to New York, New Jersey and Connecticut from “hotspot” states like Florida and Texas are mandated to quarantine for 14 days, stoking fears of more lockdowns.
Cyclical stocks like oil, banks, and consumer discretionary were falling between 4.5% and more than 5%.
Here were the biggest losers on the Dow, which were down as much as 5%:
Most of these companies are cyclical and highly economically sensitive, and especially sensitive to a lockdown-induced downturn, should the U.S. experience another one. Disney’s theme parks business and sports advertising business will be constantly under threat until a vaccine emerges.