Global stocks continue to drop

new york — US stocks fell in midday trading on Tuesday, a day after the market’s biggest drop in two years, as traders worry that the spreading coronavirus will threaten global economic growth.

The decline on Monday sent the Dow Jones Industrial Average more than 1,000 points lower and wiped out its gains for the year.

The S&P 500 is now down 5.8 per cent from its record high set last Wednesday.

Technology stocks, which rely heavily on China for both sales and supply chains, once again led the decline. Apple shed 1.7 per cent and chipmaker Nvidia slumped 4.9 per cent.

The S&P 500 index fell 1 per cent as of 1140ET. The Dow Jones Industrial Average and Nasdaq

Equity markets in Europe enjoyed a rebound in early trading in the wake of [Monday’s] bloodbath of a session, but the positive move was short-lived

David Madden,

Analyst at CMC Markets UK

both fell 1 per cent. The Russell 200 index of smaller company stocks fell 1.6 per cent.

In Europe, markets fell further but declines were far less in afternoon exchanges than during the major sell-off trigged by coronavirus developments a day earlier.

London’s FTSE 100 dropped 0.9 per cent, Frankfurt’s DAX 30 slid 0.6 per cent and Paris’ CAC 40 fell 0.8 per cent.

Earlier in Asia, Tokyo’s main stocks index closed with a 3.3 per cent loss as traders caught up with global markets after a Japanese public holiday on Monday.

Other Asian equity markets recovered a bit, with increases in Hong Kong and Seoul. India’s Sensex dipped 0.2 per cent.

“Equity markets in Europe enjoyed a rebound in early trading in the wake of [Monday’s] bloodbath of a session, but the positive move was short-lived,” said CMC Markets UK analyst David Madden. —