Well, so much for that.
After three-straight days of historical gains, the Dow Jones Industrial Average on Friday fell more than 900 points in early trading, or 4.1%, to 21,621.97, as investors turned their attentions toward the latest data on the coronavirus crisis, which showed the United States now taking the lead among countries with confirmed cases of the disease. U.S. deaths from coronavirus also topped 1,100.
Around the Bay Area, health officials warned of a possible spike in coronavirus-related deaths in Santa Clara County, in particular, over the next several weeks.
Along with the Dow’s decline, the S&P 500 and the Nasdaq Composite Index each fell by 3%. The stock-market losses came after a three-day run that was inspired by enthusiasm over the U.S. Senate signing off on a $2 trillion stimulus package designed to boost the economy during the coronavirus outbreak. The House was expected to vote on the bill on Friday.
Eric Schiffer, chief executive of Los Angeles-based private investment firm Patriarch Organization, said he thinks investors got ahead of themselves, and the market will likely swoon as more data about the economy become public.
“The stimulus bill led rally will face the ugly cascade of brutal financial numbers showing the magnitude of the economic earthquake,” Schiffer said. “The further awareness that America’s coronavirus strategy is defective will lead to a market death spiral back to the lows.”
Tesla was among the notable Bay Area companies getting caught up in the day’s losses. Tesla shares fell 5.5%, to $499 a share. On Thursday, Tesla sent a company employees an email saying that two workers had tested positive for coronavirus, but didn’t say where the afflicted employees worked.
Apple shares gave up 3.4%, to fall to $249.53, Facebook was down by 4.5%, to $155.93 a share, Google parent company Alphabet saw its shares fall by 3.7%, to $1,118.49, Intel was down almost 4%, at $53.49 a share and Netflix slipped by 1.4%, to $357.87 a share.
HP shares fell 5.5%, to $16.96. Earlier in the week, HP sent a letter to its shareholders saying that because of the ongoing coronavirus crisis, they should spurn Xerox’s proposed $34 billion unsolicited takeover attempt.
