Wall Street's recent rally hit a snag Wednesday as new coronavirus cases in the US climbed to the highest level in two months, dimming investors’ hopes for a relatively quick economic turnaround. The S&P 500 skidded 2.6%, shedding its gains for the week and leaving it nearly in the red for the month, the AP reports. The sell-off, which followed steep drops in European markets, accelerated around mid-morning on news that New York, New Jersey, and Connecticut will require visitors from states with high infection rates to quarantine for 14 days. The S&P 500 dropped 80.96 points to 3,050.33. The Dow Jones Industrial Average lost 710.16 points, or 2.7%, to 25,445.94. The Nasdaq, which was coming off its second all-time high this week, fell 222.20 points, or 2.2%, to 9,909.17.
Technology companies, which have been leading the market higher as it bounced back from a plunge in March, accounted for the biggest slice of the pullback. Financial, health care, communication services, and industrial sector stocks also took heavy losses. Energy stocks fell as the price of oil dropped sharply. Cruise line were among the biggest losers in the S&P 500. Wednesday's sell-off may also reflect traders taking the opportunity to unload some stocks that have been big winners in the market's recent rally, says Tracie McMillion, head of global asset allocation strategy for Wells Fargo Investment Institute. She expects the second half of the year to remain volatile for the market, citing the virus and uncertainty ahead of the November election.
(Read more stock market