The Dow Jones Industrial Average opened lower over 800 points immediately on Thursday as investors remained cautious after grim economic outlook by the US Federal Reserve and rise in coronavirus cases. While the S&P 500 was down 2.6 per cent, Nasdaq Composite fell 2 per cent in early trade.
The Dow Jones fell 856 points or 3.2 per cent to open near 23,133, while the S&P 500 plunged 84 points or 2.6 per cent to open near 3,106. The Nasdaq Composite opened 220 points or 2.2 per cent lower, near 9,800.
The Federal Reserve said Wednesday that it will keep buying bonds to maintain low borrowing rates and support a US economy mired in a deep recession with high unemployment. And it said nearly all its policymakers foresee no rate hike through 2022. The central bank noted in the statement after its policy meeting ended that the viral outbreak has caused a sharp fall in economic activity and surge in job losses.
The number of confirmed coronavirus infections in the United States topped two million, according to a tally by Johns Hopkins University. The US leads the world in the number of confirmed infections.
On Wednesday, the Dow Jones dipped by 282.31 points, or 1 per cent to end at 26,989.99. The S&P 500 fell 17.04 points, or 0.5 per cent closing at 3,190.14. The NASDAQ surged 66.59 points, or 0.7 per cent to end at 10,020.35.