Oct 28, 2020 - Economy

Stocks close down more than 3%

A sign for "Wall Street" in New York City, with a trader wearing a mask leaving the New York Stock Exchange in the distance

Photo: Alexi Rosenfeld via Getty Images

Stocks took a hit on Wednesday, with the S&P 500, Dow Jones Industrials Average and Nasdaq dropping more than 3% across the board.

Why it matters: The volatility is a break from the stock market grinding higher in the face of spiking coronavirus cases, a stalling economy and gridlocked negotiations over an additional stimulus package.

Background: New lockdowns are being imposed in Europe as nations exceed daily infection records and COVID-19 cases also surge across the United States.

Details: Stock indices in Germany, France and Italy fell over 3% on Wednesday.

  • The S&P 500 fell 3.5%, while the Dow Jones Industrials Average dropped 3.4% (or 940 points). The Nasdaq sunk 3.7%.
  • Oil prices fell more than 5%.

What they're saying: "There's some concern that there could be another round of global shutdowns — maybe not as pervasive as the ones we saw in spring, but enough to put a dent in economic growth," Sameer Samana, global market strategist at Wells Fargo Institute, told Axios earlier this week.

Worth noting: The S&P 500 has dropped over 5% so far this week (the worst since March), per CNBC.

  • Historically, the stock market performs well in the week leading up to Election Day.
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