Dow falls 600 points to start second quarter as virus anxiety grows

The Dow Jones fell 600 points on Wednesday as investors fled to safe-haven assets after new orders for U.S.-made goods plunged to an 11-year low and the White House issued a dire warning on the U.S. death toll from the coronavirus pandemic. The blue-chip Dow and the S&P 500 were set to extend losses entering into the second quarter, as efforts to contain the outbreak resulted in deserted shopping streets, massive staff furloughs and a halt in business activity.

Meanwhile, the collapse in oil prices brought about its first major casualty, with shale producer Whiting Petroleum filing for Chapter 11 bankruptcy protection. Its shares nearly halved in value. Companies on the benchmark index have lost about $6.3 trillion in market value so far this year, even as major governments and central banks have announced trillions of dollars in measures to thwart a global recession.

Goldman Sachs now expects sequential real U.S. GDP to plummet 34% in the second quarter on an annualized basis. The rush to safer assets pushed longer-term yields on U.S. Treasuries lower, putting pressure on interest-sensitive bank stocks, which fell 6.4%. The financials sector was the biggest drag on the S&P 500. Declining issues outnumbered advancers for a 7.88-to-1 ratio on the NYSE and a 4.78-to-1 ratio on the Nasdaq. The S&P index recorded one new 52-week high and nine new lows, while the Nasdaq recorded six new highs and 41 new lows.

Dow falls 600 points to start second quarter as virus anxiety grows, Reuters, Apr 1