Turnaround Tuesday didn’t happen for stocks. US markets are back in the red, adding to their sharp losses Monday amid coronavirus fears.
The Dow shed another 370 points, or 1.3%, around mid-morning, while the broader S&P 500 was down 1.4%.The Nasdaq Composite also fell 1.5%.
Economists remain worried about the economic fallout from the virus outbreak, including its effect on global supply chains and trade.
News of a sudden increase in cases in Italy and South Korea tanked global markets on Monday, leaving the Dow to plummet more than 1,000 points — something it has only done twice before in history, both times in February 2018.
US stocks initially appeared to rebound at Tuesday’s open, but soon fell back into negative territory.
The safe-haven US Treasury bonds again attracted buyers and the 10-year bond yield dropped to a new all-time low below 1.33%.
Even so, the risk off sentiment was nothing like Monday, said Fawad Razaqzada, senior market analyst at Forex.com.
A further selloff in stocks could be staved off by some bargain hunting and profit taking of investors with short positions, Razaqzada said.