Stocks Opened Sharply Lower after Grim Economic Data

U.S. stocks opened sharply lower on Wednesday after new economic data showed U.S. retail sales and manufacturing activity each declined by massive margins in March amid the coronavirus pandemic. The Dow Jones Industrial Average lately dropped 496.43 points, or 2.07%, to 23,453.33. The S&P 500 fell 61.46 points, or 2.16%, to 2,784.60. The Nasdaq Composite lost 154.54 points, or 1.81%, to 8,361.21.

Oil prices tumbled Wednesday after the International Energy Agency warned of a record drop in crude demand this year due to the COVID-19pandemic. West Texas Intermediate crude for May delivery fell 46 cents, or 2.2%, to $19.65 a barrel. June Brent crude slid 4%, or $1.25, to $28.35 a barrel.

U.S. consumer activity took a massive blow in March due to the rapidly spreading and deadly coronavirus outbreak. Headline retail sales plunged a record 8.7% during March, which was worse than the 8% decline expected by economists. Core retail sales, excluding the volatile auto and gas components, fell 3.1%, better than the 5.2% estimated decline.

The New York Fed’s Empire State business conditions index plummeted a record 57 points to -78.2 in April, the regional Fed bank said Wednesday. The survey found that 85% of manufacturers reported that conditions had worsened while only 7% reported improved conditions.