Stocks Ended Sharply Lower on Coronavirus Cases Spikes

U.S. stocks closed sharply lower on Wednesday, as investors worried about the rising coronavirus cases in many states. The Dow Jones Industrial Average dropped 710.16 points, or 2.72%, to 25,445.94. The S&P 500 fell 80.96 points, or 2.59%, to 3,050.33. The Nasdaq Composite tumbled 222.20 points, or 2.19%, to 9,909.17.

Oil prices lost more than 5% on Wednesday as evidence of rising coronavirus cases in many countries raised questions about efforts to restart global economies and U.S. government data reveal a third straight weekly climb in domestic crude inventories. West Texas Intermediate crude for August fell $2.36, or nearly 5.9%, to settle at $38.01 a barrel. Brent oil for August delivery declined by $2.32, or 5.4%, at $40.31 a barrel.

Florida and California on Wednesday reported record high one-day tallies for new confirmed coronavirus cases at 5,508 and 7,149, respectively. Arizona on Wednesday saw another 1,795 positive cases after adding a record 3,591 on Tuesday.

The International Monetary Fund on Wednesday also slashed its economic forecast for 2020 to negative 4.9%, saying that the coronavirus pandemic has caused an unprecedented decline in global activity.