(CNBC) The Dow Jones Industrial Average plunged more than 1,800 points on Thursday and was on pace for its worst day since the March sell-off as coronavirus cases increased in some states that are reopening up from lockdowns. Shares that have surged recently on hopes for a smooth reopening of the economy led the declines.
The 30-stock Dow traded 1,832 points lower, or 6.7%. The S&P 500 slid 5.7% while the Nasdaq Composite dropped 5%. Thursday’s losses also put the Dow on pace for its first three-day losing streak in a month. The S&P 500 was headed for its worst day since March 16.
“You’re seeing the psychology in the market get retested today” as traders weigh the the recent uptick in coronavirus hospitalizations and a grim outlook from the U.S. central bank, said Dan Deming, managing director at KKM Financial. “The sense is maybe the market got ahead of itself, which makes sense given the fact that we’ve come so far so fast.”