Coronavirus fears again put markets in a tailspin

Experts: Stock swings likely to continue amid outbreak

NEW YORK — Fear dominated financial markets again Thursday, and stocks fell sharply on worries about the fastspreading virus outbreak. It’s the latest shudder in Wall Street’s most volatile week in more than eight years.

Major U.S. indexes lost roughly 3.5%, and Treasury yields touched more record lows in their latest yo-yo move. The slide nearly wiped out the surge stocks had ridden a day earlier, which came in part on hopes that moves by authorities around the world could cushion the economic fallout. These swings are likely to continue, as long as the number of new infections continues to accelerate, many analysts and professional investors say. Thursday was the fourth consecutive day where the S&P 500 moved at least 2%, the longest such stretch since the summer of 2011.

The growing understanding that the spread of infections — and resulting damage to the economy — may not slow anytime soon is pulling sharply on markets. That pull has taken turns this week with the increasingly worldwide push that governments and central banks are trying to give markets through spending plans and interest rate cuts.

The yield on the 10-year Treasury note went as low as 0.901% for the first time in history, according to Tradeweb. Tumbling yields have brought the average rate on a 30-year fixed mortgage to a record low of 3.29%.

“It’s been a roller-coaster market in recent days for equity investors, and today we appear to be on the downward leg for that ride,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “What you need is time, and unfortunately that is still going to result in volatility.”

The S&P 500 fell 106.18, or 3.4%, to 3,023.94. It’s now 10.7% below the record high it set Feb. 19. The Dow Jones Industrial Average slumped 969.58, or 3.6%, to 26,121.28, and the Nasdaq lost 279.49, or 3.1%, to 8,738.60.

Losses were widespread, and energy stocks in the S&P 500 dropped to their lowest level since March 2009, when they were emerging from the financial crisis.

“The Western world is now following some of China’s playbook, closing schools and declaring a state of emergency for example, but there is a sense that this is too little, too late,” said Chris Beauchamp, chief market analyst at IG.

Travel-related companies continued to fall sharply on worries that frightened customers won’t want to confine themselves in planes or boats with others. Royal Caribbean Cruises sank 16.3%, Carnival fell 14.1% and American Airlines Group lost 13.4%.

A growing list of companies is warning investors that the virus is hitting their sales and profits.

This week the S&P 500 has gone from a jump of 4.6% Monday, to a loss of 2.8%, and back to a rise of 4.2%. In normal times, a move of even 1% would be notable.

Benchmark U.S. crude lost 88 cents to settle at $45.90 per barrel. Brent crude, the international standard, fell $1.14 to $49.99 per barrel.