Dow Sheds Above 4%, Nearly Erases Tuesday Gains In Early Trade

US markets were once again staring at a bearish day at hand as the Dow Jones industrial average shed more than 1,000 points or above 4 per cent in early trade. The S&P 500 and Nasdaq indices also slipped more than 2 per cent each. The sell off meant that the Dow Jones index nearly wiped off the 1,167 point gain it managed in Tuesday's trade. 

According to analysts quoted by news agency Reuters, the sharp drop came on back of skepticism around US President Donald Trump's stimulus plan to combat the coronavirus outbreak.

Trump met with fellow Republicans in the US Senate on Tuesday and discussed a payroll tax cut, but no concrete measures have been announced, reported Reuters

"This has to be a co-ordinated effort. The President cannot unilaterally take action. He needs Congress, which is the financing arm of the government," Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh, told Reuters.

Earlier this week, on Monday, a plunge in the US markets triggered a 15-minute trading halt in stocks after the S&P 500 fell 7 per cent shortly after opening. Market uncertainties surrounding COVID-19 were exacerbated over the weekend as Saudi Arabia and Russia scrapped their supply pact and pledged to increase crude oil production, leading to the meltdown on Wall Street.