Stocks slumped again on Wall Street Tuesday, piling on losses a day after the market's biggest drop in two years as fears spread that the growing virus outbreak will put the brakes on the global economy. The Dow was down 900 points, or about 3.25%, as of 2:35pm ET. CNN reports that pushes the Dow more than 7% below its latest high, inching it toward the 10% figure that represents correction territory. The S&P 500 and Nasdaq are both down about 2.75%.
The AP reports nervous investors snapped up low-risk US government bonds, sending the yield on the 10-year Treasury note to a record low. Meanwhile more companies warned that the outbreak will hurt their finances, including Mastercard and United Airlines. Travel-related stocks took another drubbing, bringing the two-day loss for American Airlines to 16%. The worst-case scenario for investors hasn't changed in the last few weeks—where the virus spreads around the world and cripples supply chains and the global economy—but the probability of it happening has risen, said Yung-Yu Ma, chief investment strategist at BMO Wealth Management (4pm ET update: The Dow was ultimately down 878 points at close.)