Dow sinks 2.9% after rate cut fails to stem market’s dread

Coronavirus

NEW YORK (AP) – The Dow Jones Industrial Average dropped 785 points and bond prices surged after an emergency interest-rate cut by the Federal Reserve failed to reassure markets racked by worries that a fast-spreading virus outbreak could lead to a recession.

The yield on the 10-year Treasury note dropped below 1% for the first time. The Dow industrials lost 2.9% to 25,917. It had surged 5% a day earlier on hopes for a broader set of stimulus measures.

The S&P 500 index fell 2.8% and is now 11% below the record high it set two weeks ago. The Nasdaq fell 3%.

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