US Stocks Decline as Three-Day Rally Fizzles

A trader works at the New York Stock Exchange

USA stocks deepened their losses late in the session, even after the House of Representatives approved a $US2.2 trillion ($A3.6 trillion) aid package - the largest in American history - to help people and companies cope with an economic downturn caused by the coronavirus outbreak and provide hospitals with urgently needed medical supplies.

The Dow Jones Industrial Average sank 4.1 per cent, or 915 points, to 21,636.78.

Investors have been on a roller-coaster ride as attempts to curb the coronavirus pandemic constrain economic activity.

The legislation is a welcome reprieve, but economists warn of a tough road ahead.

The House of Representatives is set to vote on the coronavirus economic relief package Friday.

Analysts say the oil market's hesitant response to emergency measures shows traders are more concerned with an oversupplied market.

"What we're trying to do is put the economy on ice and sow the seeds of a strong rebound as soon as the crisis is over, recouping as much economic ground as possible", said Richard McGuire, head of rates strategy at Rabobank.

The broad-based S&P 500 dropped 3.4 per cent to 2,541.47, while the tech-rich Nasdaq Composite Index tumbled 3.8 per cent to 7,502.38.

As states throughout the nation stay in or go into lock-down, President Donald Trump despatched a letter to governors Thursday, suggesting the White House was in search of to create pointers for particular person counties labeled as the both excessive, medium or low danger for the outbreak to broaden additional.

The banking index fell 5.4 per cent, tracking US Treasury yields, while oil majors Exxon Mobil and Chevron Corp fell about 6 per cent, tracking a drop in Brent crude prices. WTI futures declined 3% to $21.90 a barrel.

European stocks also fell, with the pan-continental Stoxx Europe 600 index dropping 3.2%. Materials and industrials stocks also reported big losses.

"It is clear that we have entered a recession" that will be worse than the aftermath of the global financial crisis in 2009, said International Monetary Fund chief Kristalina Georgieva. Globally, more than 585,000 people have been infected with the novel disease. The yield on the 10-year U.S. Treasury note edged down to 0.754%, from 0.806% Thursday.

Futures for each of the three major indices were slightly higher Thursday evening as Congress closed in on passing a $2 trillion economic relief package. Japan's Nikkei 225 was the best performer, rising 3.9% to end what was the gauge's best week in its 70-year history.



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