Wall Street was poised for more losses Wednesday, as an escalating oil price war compounded investor panic about the coronavirus’ tightening grip on the U.S. economy, without any clear path to economic protections from the White House.
Dow Jones industrial average tumbled 700 points, or about 3 percent, at the open. Standard & Poor’s 500 futures sank 2.8 percent.
“The public’s reaction to the virus literally has the potential to shut down the economy with travel interrupted and business meetings cancelled,” Chris Rupkey, chief financial economist at MUFG Union Bank, wrote in commentary Wednesday. “The wheels of the economy can’t continue to turn as fast if the whole country avoids social interaction and tries to live online through the Internet. With less store traffic, merchants may have to actually cut prices instead of raising them. “
