The stock market really built up downward momentum on Wednesday, adding to losses earlier in the week as market participants continued to look warily at rising COVID-19 case counts in the U.S. and Europe. The Dow Jones Industrials (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) all dropped sharply from the open and finished the day down between 3% and 4%.
Stocks sank across the globe on Wednesday on concerns that rising COVID-19 cases in Europe, the United States and elsewhere would disrupt fragile economic recoveries, while the U.S. dollar rose on safe-haven demand. Also weighing on the market, U.S. crude stockpiles rose more than expected last week.
U.S. stocks tumbled on Wednesday, with the Dow closing at lows last seen in late July, as coronavirus cases soared globally and investors worried about the possibility of a contested U.S. presidential election next week. The sell-off accelerated during the session's final minutes,with both the Dow and benchmark S&P 500 posting their biggest single-day declines since June 11.