Coronavirus knocks stocks from record highs

Coronavirus knocks stocks from record highs

Traders work on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange.

Bryan R. Smith | AFP | Getty Images

Dow Jones Industrial Average drops 277 points

The Dow slid 277.26 points, or 0.94%, to 29,102.51. The S&P 500 fell 0.54% to 3,327.71. The Nasdaq Composite pulled back 0.54% to 9,520.51. Investors booked some of the week’s sharp gains as worries over the coronavirus’ impact on the Chinese economy persisted.

4-day winning streak snapped

The major averages fell for the first time in five sessions amid worries the Chinese economy could suffer a significant economic slowdown because of the coronavirus outbreak. Ed Hyman of Evercore ISI sees Chinese GDP growth of zero in the first quarter. JPMorgan expects the second-largest economy in the world to expand by just 1% in the first three months of 2020. Not even a much stronger-than-expected jobs report could outweigh those concerns. Still, the major averages posted solid weekly gains.

Caterpillar and Boeing drop, Uber jumps

Caterpillar and Boeing — two bellwether stocks for the global economy — fell  2.83% and 1.37%, respectively, to lead the Dow lower. Uber, meanwhile jumped 9.54% on the back of stronger-than-forecast quarterly results.

What happens next?

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