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The Dow dropped about 227 points, posting its first losing week in three, as investors fled risk assets amid the intensifying fears around the deadly coronavirus. The S&P 500 dipped 1%, while the NasdaqÂ fell 1.7% to suffer its worst day since Jan. 27 as big tech led the broad market decline. Amazon, Apple and Alphabet all traded more than 2% lower, and Microsoft dropped 3.1%. The growing coronavirus worries reignited appetite for safe-haven assets, as investors pushed 30-year Treasury yield to an all-time low.Â â Li
Data compiled by FactSet showed S&P 500 traded at 19 times 12-month forward earnings as of Wednesday. That’s the P/E’s highest level since May 23, 2002, according to the data. That number is well above recent trends, eclipsing five, 10, 15 and 20-year averages. âImbert
Heading into the final hour of trading, the major averages were all headed for their first weekly decline in three. The Dow traded more than 200 points lower, while the S&P 500 and Nasdaq both fell more than 1%. Traders also loaded up on U.S. bonds, pushing the 30-year rate to a record low. âImbert
“As yields plummet, the bond market’s screaming ever louder at the increasing disconnect between its outlook for the economy and that of the stock market, which has been signaling increased optimism for growth stocks,” said Alec Young, managing director of global markets research at FTSE Russell. “It’s more than just the coronavirus. The most recent downturn in bond yields started before mid-January, when coronavirus headlines first broke out. It’s all about a gut check today.” âChang