By Yasin Ebrahim
Investing.com – U.S. stocks extended losses Wednesday, pushing the Dow into bear-market territory on signs the novel coronavirus is gathering pace in the U.S. after both Washington and San Francisco banned large gatherings to curb the virus outbreak, which has become a pandemic according to the World Health Organization.
The S&P 500 slipped 4.97%, Nasdaq Composite lost 4.78% and the Dow Jones Industrial Average fell 5.55%, or nearly 1,400 points, taking its losses to 20% from all-time highs.
Boeing (NYSE:BA) was a big drag on the blue-chip index, falling 15% on reports its would tap its entire loan facility of $13.8 billion. Its declines accounted for about 240 points off the Dow.
After weeks of downplaying the potential effects of the virus, President Donald Trump has called an emerging meeting of top U.S. health officials.
Washington state Gov. Jay Inslee placed a ban on large gatherings in several counties across the state to limit the spread of Covid-19.. San Francisco health officials, meanwhile, announced that they are also banning gatherings of 1,000 or more to contain the virus.
The World Health Organization declared Covid-19 a global pandemic as the virus has spread globally, with infections now topping 120,000.
Investor hopes of U.S. stimulus measures to boost economic growth, meanwhile, were given a boost amid reports that White House is in favor of declaring a national disaster under the Stafford Act to free up to $40 billion in immediate aid, Politico reported.
Trump a day earlier floated the idea of temporarily suspending payroll taxes to cushion the economic blow from the virus outbreak.