Dow Jones falls 452 points as virus fears spark sell-off

U.S. stocks fell sharply Monday, sending the Dow Jones Industrial Average down by more than 450 points, as investors grappled with fresh worries about the spread of a new virus in China that threatens global economic growth.

The sell-o≠ gave the Dow its first five-day losing streak since early August and handed the S&P 500 its worst day since early October. Both indexes were o≠ about 1.5 percent, giving up a significant portion of their gains this month.

The latest bout of selling on Wall Street came after China announced a sharp rise in cases of the virus. Airlines, resorts and other companies that rely on travel and tourism su≠ered steep losses. Gold prices rose as did bonds as traders sought refuge in safer holdings. The yield on the 10-year Treasury fell to 1.6 percent, its lowest level since October. The market’s broad slide followed a sell-o≠ in markets in Europe and Japan.

“Over the weekend you saw more cases,” said Quincy Krosby, chief market strategist at Prudential Financial. “That got investors and traders worried that this may be a longer event. The next question is, ‘What happens to global growth if this does continue and magnify?’”

The Dow Jones Industrial Average fell 453.93 points, or 1.6 percent, to 28,535.80. The Dow had been down nearly 550 points. The S&P 500 index dropped 51.84 points, or 1.6 percent, to 3,243.63. The Nasdaq lost 175.60 points, or 1.9 percent, to 9,139.31. The Russell 2000 index of smaller company stocks gave up 18.09 points, or 1.1 percent, to 1,644.14.

Most markets in Asia were closed for the Lunar New Year holiday, but Japan’s Nikkei fell 2.03 percent, its biggest decline in five months. European markets also slumped. Germany’s DAX and France’s CAC 40 dove 2.7 percent.

Chinese health authorities have confirmed 2,750 cases of the virus along with 81 related deaths as authorities extended a weeklong public holiday by an extra three days as a precaution against having the virus spread still further. The virus has spread to a dozen countries, including the U.S.