Traders work on the floor of the New York Stock Exchange.
Spencer Platt | Getty Images News | Getty Images
Dow Jones Industrial Average drops 228 points
The Dow dropped 227.6 points, or 0.78%, to close at 28,992.41. The S&P 500 dipped 1.05% to 3,337.75. The Nasdaq Composite pulled back 1.79% to 9,576.59. An uptick in coronavirus cases sent investors running away from stocks and loading up on bonds.
30-year rate drops to record low
China’s National Health Commission confirmed more than 800 new coronavirus cases in China. South Korean authorities reported more than 200 new cases. This spike in coronavirus cases dented market sentiment and led traders to plow money into bonds. This pushed the 30-year U.S. bond rate to its lowest level ever and lifted gold to its highest level in seven years. Bottom line: The coronavirus fears that seemed to have abated in recent weeks are back in full force.
‘FAANG’ and Microsoft drop
Tech shares led the way lower for the broader market, with the so-called FAANG name — Facebook, Amazon, Apple, Netflix and Google-parent Alphabet — all closed 1.5% to 2.7% lower. Microsoft, meanwhile, was among the worst-performing Dow stocks, sliding 3.16%.