US Stocks Tumble Back Into Red As Virus Weighs On Sentiment

New York, (UrduPoint / Pakistan Point News - 25th Feb, 2020 ) :Wall Street stocks tumbled back into the red Tuesday after a positive open as worries about the coronavirus continued to dog investor sentiment.

All three major US indices were down close to one percent near midday, adding to the toll after Monday's routs following news of growing outbreaks outside of China.

The declines came as US companies cited potential coronavirus impacts, including less spending from tourists and supply chain problems.

"Bit by bit, US investors are seeing the prospects for global growth diminish," said Gregori Volokhine of Meeschaert Financial Services.

"With the news of the last three or four days, it's hard to be optimistic." Near 1650 GMT, the Dow Jones Industrial Average was down 1.0 percent at 27,695.15.

The broad-based S&P 500 shed 0.9 percent to 3,196.97, while the tech-rich Nasdaq Composite Index lost 0.

8 percent at 9,149.67.

Mastercard slumped 4.1 percent as it forecast that first-quarter sales growth would be two to three percentage points below its prior projection due to the hit to cross-border traffic and e-commerce from the coronavirus.

Macy's dropped 3.8 percent as it warned that the coronavirus was a concern to its supply chain and sales from overseas tourists. But company executives said it was too soon to estimate any hit from the outbreak.

United Airlines shed 3.5 percent as it withdrew its full-year profit forecast, citing uncertainty from the virus. United has lost 100 percent of its near-term travel demand to China and about 75 percent of demand to the rest of its trans-Pacific routes.

But Dow member Home Depot climbed 1.9 percent after reporting higher fourth-quarter earnings following a 5.2 percent jump in comparable sales, topping estimates.