Markets

Here's what happened to the stock market on Thursday

Traders work on the floor of the New york Stock Exchange on February 28, 2020.
Scott Heins | Getty Images

Dow Jones Industrial Average tanks 969 points

The  plunged 969.58 points, or 3.58%, to 26,121.28. The  tumbled 3.39% to 3,023.94. The  also fell 3.10% to 8,738.60. Stocks erased most of their big gains from Wednesday as fears of the coronavirus  outbreak continued to keep investors on edge.

Coronavirus fears grow

Fears about the coronavirus disrupting the global economy continued to grip Wall Street as countries around the world extended quarantines and travel restrictions. California declared a state of emergency after a coronavirus-related death and 53 confirmed cases in the state. The number of infections in New York also doubled overnight to 22 as the state ramps up its testing.

Bank stocks tumble as yields hit new low

The rate on the  fell to an all-time low below 0.9% on Thursday.The tumbling yields kept pressure on bank stocks, which led the major indexes lower.  and both dropped about 5%.  fell 8.04% and sank 5.92%.

Airlines lead the declines

Airline stocks also took a huge beating, leading the declines in the Dow Jones Transportation Average, which dipped into bear market territory Thursday. United Airlines cratered 13.25%, while American Airlines tanked more than 13.44%, on pace for its worst day since 2016.

What happens next?

Investors will monitor a key jobs report on Friday for signs of any negative impact on the labor market from the coronavirus outbreak. The U.S. economy is expected to have added 175,000 jobs in February, down from 225,000 in January.

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