Coronavirus fears pushed the stock market into an official correction on Thursday.
 | THU, FEB 27, 2020 | | | | DOW | | NAME | LAST | CHG | %CHG | | MSFT | 158.18 | -11.99 | -7.05% | | AAPL | 273.52 | -19.13 | -6.54% | | PFE | 34.10 | -0.62 | -1.79% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | BAC | 29.13 | -1.50 | -4.90% | | F | 6.97 | -0.24 | -3.33% | | AMD | 44.01 | -3.48 | -7.33% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AMD | 44.01 | -3.48 | -7.33% | | MSFT | 158.18 | -11.99 | -7.05% | | AAPL | 273.52 | -19.13 | -6.54% | |
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Stocks swung wildly throughout the day, but the major indexes could not avoid notching a correction at the close of trading. The Dow Jones Industrial Average was down substantially throughout the day, but losses were sometimes moderated as traders considered the possibility that the Federal Reserve might come to the rescue with another rate cut.
With or without the Fed, the downturn remains unpredictable because it comes in response to a coronavirus outbreak that has defied most divinations. CNBC's Tom Franck, however, has broken down the history of corrections going back to World War II.  The average decline for corrections is about 13.7% and they last around four months — unless, of course, they become bear markets, characterized by a dip of 20% or more. Those last much longer and get much worse. The big worry about the coronavirus is that if it spreads more widely in the U.S., it could keep consumers and their fat wallets at home. "If this flows into the U.S., we could be in trouble," said Gregory Faranello, head of U.S. rates trading at AmeriVet Securities, "because, let's face it, the U.S. consumer is what's holding this thing together." Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world. |
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