Dow Plunges 700 Points As Investors Worry About A Resurgence Of Coronavirus

The Dow Jones Industrial Average was down 2.8%, nearly 700 points, on Wednesday, while the S&P 500 fell 2.7% and the tech-heavy Nasdaq Composite lost 2.3%.

Stocks accelerated their losses after the open, taking a hit from growing fears of a resurgence in coronavirus infections across the country as states lift lockdown orders.

New cases in the U.S. recently hit their highest level since April, with the nation’s three most populated states—Texas, Florida and California—all reporting a record high number of new cases.

New York, New Jersey and Connecticut announced on Wednesday that they will require visitors from Florida, Texas and other states with a spike in new cases to quarantine for 14 days on arrival.

White House health advisor Dr. Anthony Fauci warned that many states are beginning to see a “disturbing surge” in new coronavirus cases, though he did remain upbeat about a potential vaccine arriving by early 2021.

Shares of companies that would benefit from the economy reopening—including retailers, airlines and cruise operators—plunged across the board on Wednesday.

Royal Caribbean Cruises and Norwegian Cruise Line saw their stocks plunge over 10% following a downgrade from Barclays analysts, who warned that both companies face a “murky path” to returning to full operations.

Shares of Dell Technologies jumped over 8% after the Wall Street Journal reported late on Tuesday that the company is exploring options—including a possible spinoff or sale—for its $50 billion stake in cloud computing company VMWare.