4:29 pm EST
Dow Jones Plunges Over 1,000 Points On Heightened Coronavirus Fears
The Dow Jones Industrial Average sank more than 1,000 points Monday. The Dow lifted off its low of the day though, closing down 1,029 points. Among major Dow Jones components, UnitedHealth stock and Apple stock were among those falling 4% or more.
The coronavirus-inspired sell-off infected Wall Street on Monday as the virus now threatens to damage global supply chains and the global economy.
Monday's plunge marks one of the largest daily point drops for the Dow in its 124-year history. But it's important to acknowledge that point drops are less meaningful than overall percentage drops. Today's 3.5% sell-off in the Dow Jones ranks nowhere close to its worst daily percentage drops, which extended to 23% during the crash of 1987, for example.
Additionally, the major U.S. indexes were already becoming too extended from their moving averages. Therefore, a pullback at this point represents healthy action. When major market rallies pause, they can offer the chance for leading stocks to form new potential buy points for investors.
Coronavirus Correction Amid Current Market Rally
Most notably, tech stocks and chip stocks were hit hardest on Monday as their supply chains were among those most at risk. As such, the Nasdaq plunged 3.2% while the VanEck Vectors Semiconductor ETF (SMH), which measures the performance of chip stocks, dove 4.5%.
The Dow Jones industrials fell 3.55% and the S&P 500 sold off nearly 3.4%. Volume rose sharply on both major exchanges vs. the close on Friday — a bearish sign.
Both the S&P 500 and the Dow Jones closed below their 50-day moving averages. The Nasdaq closed just barely below its 50-day line and is currently seeking support at that level. Monday's drop comes just after the Nasdaq composite and S&P 500 hit record highs last week.
Among exchange traded funds, the Innovator IBD 50 (FFTY) closed down nearly 3% Monday. The growth-focused ETF also hit a new 52-week high last week and was up over 6% for 2020 before Monday's drop.....MUCH MORE
Dow Jones Stocks Sell Off Due To Coronavirus
All 30 of the Dow Jones components closed in the negative on Monday, including Apple (AAPL) and UnitedHealth Group (UNH).
Apple closed down 4.3% on heightened coronavirus fears, as the Dow giant remains heavily exposed to impacts of the coronavirus on its supply chains in China and elsewhere in Asia. Shares of Apple are currently below the 10-week line....
They have a second round-up after the futures resume trading in a couple hours, on blogroll at right if interested
