'Evaporating' more than 1,100 points, Dow Jones witnessed the strongest decline in history

US stocks fell sharply in a volatile trading session on Thursday (February 27), when investors were concerned the COVID-19 epidemic could spread in the US. A series of warnings from businesses and analysts on the corona virus have put pressure on key indicators, causing them to fall into the regulatory zone, CNBC reported.

Ending the Thursday session, the Dow Jones index evaporated 1,190.95 (equivalent to 4.4%) to 25,766.64 points. The S&P 500 lost 4.4% to 2,978.76 points, while the Nasdaq Composite lost 4.6% to 8,566.48 points.

Dow Jones saw its sharpest decline in history on Thursday. The S&P 500 also dropped the 3,000 point mark for the first time since October 2019.

That downturn sent the Dow Jones, S&P 500 and Nasdaq Composite into the corrective territory, plunging more than 10% from record highs. Dow Jones only took 10 sessions to decline from an all-time high into the corrective zone. The S&P 500 and the Nasdaq Composite recorded record highs last week.

Both the Dow Jones and S&P 500 marked the worst session since February 2018, while the Nasdaq Composite had the strongest session since August 2011.

The Dow Jones and S&P 500 are also heading for the worst week since 2008. By the end of Thursday, the Dow has plunged more than 11% since the beginning of the week, while the S&P 500 dropped 10.8%.

'Evaporating' over 1,100 points, Dow Jones witnessed the strongest decline in history

The Centers for Disease Control and Prevention (CDC) on Wednesday (February 26) confirmed the first case of COVID-19 in the United States of unknown origin in Northern California, indicating the possibility of "spreading." in the community ”of this epidemic. Patients without a travel history or contact will put them at risk of infection, CDC said. On Thursday, the Governor of California, Gavin Newsom, said the state was monitoring 8,400 people possibly associated with the new strain of corona virus.

Apple, Intel and Exxon Mobil were the Dow Jones worst performers on Thursday, losing more than 6%. AMD and Nvidia shares fell 7.3% and 5.6%, respectively.

American Airlines shares fell 7.7%, and United Airlines shares fell 2.4%. Meanwhile, Las Vegas Sands and MGM Resorts stocks fell 1.3% and 4.5%, respectively.

US President Donald Trump tried to allay concerns about the COVID-19 epidemic on Wednesday (February 26). At a White House press conference, Trump said the risk of virus infection for Americans remains "very low," but added that the US would "spend whatever is appropriate". Trump also assigned US Vice President Mike Pence to deal with the COVID-19 epidemic and said markets would soon recover.

Concerns about how COVID-19 will affect corporate profits and global economic growth rocked the US stock market for the past week as new cases swelled. South Korea confirmed a total of more than 1,700 cases. More than 600 people have been infected by the virus in Italy.

An outbreak of the disease has led some companies to issue warnings about revenue and profits.

The S&P 500 fell for a sixth session in a row on Thursday, marking the longest plunge since August 2019. The Dow also plunged for 6 consecutive sessions, the longest plunge since 2018.

By Thursday, Dow Jones had "evaporated" more than 3,000 points this week.

Meanwhile, bond prices have soared since the beginning of the week. 10-year US government bond yield dropped by 1.25%, reaching a record bottom, before recovering. Earlier this month, bond yields fluctuated above 1.4%. 30-year bond yields also fluctuated at an all-time low. Interest rates often move in opposite directions with prices.