The Dow just logged its worst 2-day percentage drop in two years — here are 5 reasons the stock market is tanking, and only one of them is the coronavirus
Published: Feb 25, 2020 8:27 p.m. ET
The S&P 500 has shed more than $1.7 trillion in value in the past two days
The U.S. stock-market rally is unraveling, with a period of historic gains coming to a screeching halt, as fear that the coronavirus epidemic may reach America rattles Wall Street.
The Dow Jones Industrial Average DJIA, -3.15% was off 929.92 points, or 3.3%, at its Tuesday nadir, at 27,030.88, a day after the blue-chip benchmark suffered a drop of more than 1,000 points, representing the third worst one-day point drop in the index’s 124-year history.
The Dow finished Tuesday down nearly 880 points to mark its sharpest-ever two-session slide in point terms, losing about 1,910 points, according to Dow Jones Market Data.
The fall also marked the largest two-day percentage slide for the index since the period ended Feb. 5, 2018. The skid puts the Dow 8.4% away from its Feb. 12 record-high close of 29,551.42. That means the Dow is approaching correction territory at 26,596.28, defined as a drop of at least 10%, but not greater than 20%, from a recent peak.
Trump is of course reportedly furious over the state of the markets because he took credit for all those record gains. Hopefully the correction goes all the way and the Great Bull Market of 2009 comes to an end, just in time for the election.
Marx, Capital, Volume I, Chapter One