US Stocks tumble on fret over second virus wave

The US equity market finished session steep lower on Tuesday, 12 May 2020, on new concerns over the second wave of coronavirus in the region after a top government scientist warned against ending the coronavirus shutdowns and reopening the economy too quickly. At closing bell, the Dow Jones Industrial Average stumbled 457.21 points, or 1.89%, to 23,764.78. The S&P 500 - a gauge of US retirement and education savings accounts - dropped 60.20 points, or 2.05%, to 2,870.12. The tech-heavy Nasdaq Composite Index sank 189.79 points, or 2.06%, to 9,002.55.

The risk-off sentiment crept back into markets on renewed coronavirus concerns after Dr. Anthony Fauci, the nation's top infectious disease official, warned of "suffering and death" if the country reopens prematurely.

 

There is a real risk that you will trigger an outbreak that you may not be able to control and, in fact paradoxically, will set you back, not only leading to some suffering and death that could be avoided, but could even set you back on the road to try to get economic recovery," Fauci said of premature reopening. Fauci also told members of the committee that the U.S. is moving in the right direction but does not have "by any means total control of this outbreak."

ECONOMIC NEWS: US Consumer Prices Slide 0.8% In April-- US consumer prices index slid by 0.8% in April after falling by 0.4% in March, according to a report released by the Labor Department on Tuesday. The drop reflects the largest monthly decline since December of 2008. Gasoline prices led the way lower, plummeting by 20.6% in April after tumbling by 10.5% in the previous month. The nosedive in gasoline prices contributed to another steep drop in energy prices, which plunged by 10.1% in April after slumping by 5.8% in March. Energy prices saw their largest monthly decrease since November of 2008. However, the collapse in energy prices was partly offset by a 1.5% spike in food prices, with prices for food at home soaring by 2.6% to record the biggest monthly increase since February of 1974.

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