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Dow sinks 2.9% after rate cut fails to stem market's dread

Richard Drew/AP

Trader Mark Muller works on the floor of the New York Stock Exchange, Tuesday, March 3, 2020. Stocks are opening lower on Wall Street after the Group of Seven countries held off on giving the global economy new stimulus to help it cope with the coronavirus outbreak. (AP Photo/Richard Drew)

Posted at 1:14 PM, Mar 03, 2020

and last updated 2020-03-03 16:14:42-05

NEW YORK, N.Y. — The Dow Jones Industrial Average dropped 785 points and bond prices surged after an emergency interest-rate cut by the Federal Reserve failed to reassure markets racked by worries that a fast-spreading virus outbreak could lead to a recession.

The yield on the 10-year Treasury note dropped below 1% for the first time. The Dow industrials lost 2.9% to 25,917.

It had surged 5% a day earlier on hopes for a broader set of stimulus measures.

The S&P 500 index fell 2.8% and is now 11% below the record high it set two weeks ago. The Nasdaq fell 3%.

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Dow sinks 2.9% after rate cut fails to stem market's dread

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