The Dow slid 128.05 points, or 0.44%, to 29,219.98. The S&P 500 dipped 0.38% to 3,373.23. The Nasdaq Composite pulled back 0.67% to 9,750.96. A wave of risk-off sentiment, coupled with some technical factors, pressured the broader stock market.
The major averages hit their session lows around midday trading after a sudden move down. While the reason for the decline was not entirely clear, some traders pointed to some technical factors as well as a report from the state-run Global Times newspaper in China, which said coronavirus cases spiked at a hospital in Beijing. Others pointed to positions being unwound within so-called momentum stocks. "At this point, if we start seeing anything negative, it will probably force some people to start taking profits," said Christian Fromhertz of Tribeca Trade Group.