New York (CNN Business)Turnaround Tuesday didn’t happen for stocks. US markets are back in the red, adding to their sharp losses Monday amid coronavirus fears.
The Dow ( shed as many as 435 points, or 1.5%, around midday, while the broader )S&P 500 ( was down 1.2%.The )Nasdaq Composite ( also fell 1%. )
Economists remain worried about the economic fallout from the virus outbreak, including its effect on global supply chains and trade.
News of a sudden increase in cases in Italy and South Korea tanked global markets on Monday, leaving the Dow to plummet more than 1,000 points — something it has only done twice before in history, both times in February 2018. The index has dropped for four consecutive days including Tuesday, shedding nearly 1,800 points in total.
US stocks initially appeared to rebound at Tuesday’s open, but soon fell back into negative territory.
Even so, the risk off sentiment was nothing like Monday, said Fawad Razaqzada, senior market analyst at Forex.com.
A further selloff in stocks could be staved off by some bargain hunting and profit taking of investors with short positions, Razaqzada said.
The CBOE Market Volatility Index (, which spiked Monday, w )