U.S. stocks tumbled at opening Wednesday as fallout over the coronavirus roiled the markets.
The Dow Jones Industrial Average opened 5.71% down, or more than 1,200 points.
The S&P 500 and Nasdaq composite were also down, 5.53% and 4.65%, respectively.
Cases of the virus worldwide eclipsed 200,000 as Hong Kong reported Tuesday its largest increase of infections after a period of a slowdown and raised fears that there could be a second wave of infections.
U.S. deaths by the virus surpassed 100 Tuesday. All 50 states now have confirmed cases, as West Virginia reported its first patient. There are over 6,500 cases in the states, according to Johns Hopkins University.
The travel industry has been hit hard by the outbreak of the virus. Total spending on travel in the United States, which includes transportation, lodging, retail, attractions, and restaurants, is projected to plunge by $355 billion for the year, or 31%. That is more than six times the impact of 9/11, according to a report by the U.S. Travel Association.
The association’s president and CEO, Roger Dow, commented on the report’s findings by stating that “travel-related businesses employ 15.8 million Americans, and if they can’t afford to keep their lights on, they can’t afford to keep paying their employees. Without aggressive and immediate disaster relief steps, the recovery phase is going to be much longer and more difficult.”
Treasury Secretary Steven Mnuchin warned Republican senators Tuesday that the U.S. unemployment rate could surge to 20% if the government does not provide financial assistance during the coronavirus pandemic.
The drop in the markets comes as U.S. stocks soared on Tuesday as top government officials and legislators sought a $1 trillion stimulus package to counter the economic effects of the coronavirus.
