US Stocks tumble as U.S. virus cases pass 100,000

The US equity market finished session lower on Friday, 27 March 2020, snapping a massive three-day surge, as investors elected to book profit after climbing more than 20% from its recent low. The selloff triggered amidst deepening doubts about the fate of the U.S. economy after the number of coronavirus cases in the country passed 100,000, and the death toll exceeded 1,500. Stocks were also influenced by sagging oil prices. At closing bell, the Dow Jones Industrial Average worries about the rising number of coronavirus infections. The S&P 500 dropped 88.60 points or 3.4% to 2,541.47. The Nasdaq Composite tumbled 295.16 points or 3.8% to 7,502.38

Profit taking triggered from beginning of trade on Friday, as some traders looked to cash in on the strong gains seen in recent days, amidst Lingering concerns about the economic impact of the coronavirus after the number of coronavirus cases in the country passed 100,000, and the death toll exceeded 1,500. U.S. stocks deepened their losses late in the session, even after the House of Representatives approved a $2.2 trillion aid package - the largest in American history - to help people and companies cope with an economic downturn caused by the coronavirus outbreak and provide hospitals with urgently needed medical supplies.

Adding to the negative sentiment, the University of Michigan released a report showing consumer sentiment deteriorated by much more than initially estimated in the month of March. The report said the consumer sentiment index for March was downwardly revised to 89.1 from the preliminary reading of 95.9. The consumer sentiment index is now down sharply from the final February reading of 101.0, reflecting the fourth largest one-month decline in nearly a half-century.

The energy index was the biggest%age loser among the 11 major S&P sectors, influenced by sagging oil prices. The price for Brent crude was down to just below $28 per barrel, while West Texas Intermediate crude was trading around $21.50 per barrel.

Delta Airlines, American Airlines and United Airlines fell between 6% and 11% as U.S. Treasury Secretary Steve Mnuchin said the help designated for airlines in the aid package was not a bailout and that taxpayers would need to be compensated. Boeing Co slumped 10%, after Mnuchin said the planemaker had no intention of using federal money.

The banking index fell 4.6%, tracking U.S. Treasury yields as investors sought safety in high-quality assets.

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