By Kim Khan
Selling in stocks accelerated midday Thursday, sending the major indexes near the lows of the day as the market remained at the mercy of headlines about Covid-19.
The S&P 500 sank 3.1% and the Nasdaq Composite lost 2.7%. The Dow Jones Industrial Average tumbled 3.1% or 846 points.
The losses reversed a large chunk of Wednesday’s major gains, when enthusiasm about former Vice President Joe Biden’s Super Tuesday showing gave investors an excuse for a healthcare-stock-led rally.
But the one-day-surge-one-day-plunge action is more evidence that Wall Street is still in the dark about how much impact Covid-19 will have on economic activity and corporate bottom lines.
Bonds were back in rally mode, with the 10-Year Treasury yield approaching record lows again at 0.91%.
Airlines, travel sites and other hospitality stocks sank sharply as companies continued to cancel non-essential travel and corporate events and conferences.
Dow component Boeing (NYSE:BA) fell 6% on concerns that the dent in air travel demand would lead to canceled orders at a time the company is vulnerable to do its 737 Max grounding. That drop took more than 115 points off the blue chip index alone.
