The coronavirus stock market sell-off continued Monday despite another round of stimulus from the Federal Reserve over the weekend. Boeing (BA) sold off sharply again in the Dow Jones Industrial Average today, while Tesla (TSLA) was among the worst performers in the Nasdaq 100.
Tesla stock dropped 13% to 475.36 after RBC cut the electric-car maker’s price target to 380 from 530.
Market trading was halted for 15 minutes just after the open, after futures hit their “limit down” levels. Near midday, the Dow Jones industrials, S&P 500 and Nasdaq composite showed losses of 6.2% to 6.8%. The Russell 2000 small-cap index slumped 9.2%.
The number of confirmed Covid-19 cases in the U.S. is now around 3,800, according to the latest data from Johns Hopkins. That’s up around 30% from Sunday morning. Testing is starting to ramp up in the U.S., but it is still far below what health experts say is needed. The Centers for Disease Control on Sunday recommended no gatherings of 50 or more people for eight weeks.
A two-day Fed meeting this week was canceled because the Fed slashed its key lending rate by 100 basis points to a range of 0% to 0.25%. It also announced $700 billion in additional bond purchases, otherwise known as quantitative easing.
Dow Jones Movers
Boeing was the worst performer in the Dow Jones index, down 18%. Shares plunged 35% last week amid a 16% drop for IBD’s airline group.