Dow nearly erases "Trump bump"

Dow nearly erases "Trump bump"

Wall Street extended its deep sell-off Wednesday, and the Dow nearly erased the gains it made under U.S. President Donald Trump.

Fred Katayama reports.

A dramatic drawdown on Wall Street.

Stocks got slammed Wednesday over fears about the coronavirus.

What's more, investors also sold off safe-haven assets such as long-term Treasuries and gold.

The S&P 500 plunged 5%.

And the Dow lost more than 1300 points, nearly erasing the so-called "Trump bump" of gains in the blue chip index since Donald Trump took office as president in 2017.

The rebound sparked by the Trump Administration's dramatic stimulus plan Tuesday proved short-lived as investors factored in a global recession - or possibly something worse- stemming from the coronavirus outbreak.

Tendayi Kapfidze is chief economist at LendingTree.

SOUNDBITE: TENDAYI KAPFIDZE, CHIEF ECONOMIST, LENDINGTREE, (ENGLISH) SAYING: "The trillion dollar package is a good thing in the near term as stimulus to the economy, but in the long-run, that increases the deficit, increases the amount of borrowing that'll have to happen from the U.S. Treasury and governments around the world, so that's driving up the cost of debt.

That means all kinds of assets on sales or people rushing out of them into cash." Airlines took the biggest hit.

Carriers asked staff to take unpaid leave.

Shares of hotel operators Hilton, Marriott and Hyatt also sank.

Boeing shares plummeted yet again.

The plane maker has asked for a $60 billion aid package for the U.S. aerospace manufacturing industry.

Among the few gainers: supermarket stocks.

Credit Suisse said Walmart would benefit from the move by consumers to stay at home and order groceries online amid the coronavirus crisis.

Kroger shares also shot higher.

After the close, the Intercontinental Exchange said it'll temporarily close the New York Stock Exchange's equities trading floor on Monday and move to all-electronic trading.