Wall Street slumps at open as investors wary of US response to coronavirus

Rebound in European stocks fizzles out

The Dow Jones Industrial Average fell 413.53 points, or 1.65 per cent, at the open. Photograph: AFP via Getty

The Dow Jones Industrial Average fell 413.53 points, or 1.65 per cent, at the open. Photograph: AFP via Getty

 

US stock indexes fell sharply at the open on Wednesday as investors were sceptical about President Donald Trump’s stimulus plan to combat the coronavirus epidemic.

The Dow Jones Industrial Average fell 413.53 points, or 1.65 per cent, at the open to 24,604.63 and the S&P 500 opened lower by 56.63 points, or 1.96 per cent, at 2,825.60.

The Nasdaq Composite dropped 208.01 points, or 2.49 per cent, to 8,136.25 at the opening bell.

Elsewhere, a rebound in stocks ran out of steam on Wednesday despite the Bank of England joining other central banks in cutting interest rates, as investors weighed up whether coordinated monetary and fiscal stimulus could counter the shock from coronavirus.

By mid-morning, European stock gains had fizzled as caution set in. The FTSE 100 fell 0.4 per cent after earlier being up more than 1 per cent, the Euro Stoxx was 0.09 per cent lower and Germany’s Dax down 0.06 per cent. US stock futures dropped 3.32 per cent.

The Iseq was 1.2 per cent weaker at lunchtime. – Reuters