The stock exchanges in New York opened considerably lower on Wednesday. This was a definite step back after the substantial price rises on Wall Street the day before.
Investors remain under the spell of the new coronavirus and developments in the oil market.
Shortly after the start, the Dow-Jones index was 2.3 percent lower at 24,442 points. The broad S&P 500 fell 2.5 percent to 2814 points, and the Nasdaq technology exchange lost 2.2 percent to 8162 points.
US President Donald Trump said on Tuesday to come up with a large package of measures to support the economy. But really concrete details were not reported, and there was hope in the financial markets that steps would be taken in the short term. The number of corona infections in the United States has risen to more than a thousand, with more than thirty deaths.
Earlier in the day, the British central bank came up with an interest rate cut and other measures against the economic impact of the coronavirus. The European Central Bank (ECB) is expected to provide support measures on Thursday. Last week, the Federal Reserve also issued an interest rate cut in connection with the coronavirus. The Fed is expected to take a new interest rate step later this month.
Oil prices fell sharply after the strong recovery on Tuesday. Saudi state oil company Saudi Aramco is going to increase its oil production. The move is part of the price war that Saudi Arabia has unleashed on the oil market. Oil companies such as Chevron and ExxonMobil were lowered by 1 percent.
In addition, soft drink and snack producer PepsiCo (minus 2.7 percent) announced that it would take over the maker of energy drinks Rockstar Energy Beverages in a deal worth nearly $ 3.9 billion. It is the first major acquisition under the leadership of CEO Ramon Laguarta of PepsiCo that came to be at the helm of the company in October 2018.
Sporting goods manufacturer Nike fell 4.5 percent. The German rival Adidas expects strong blows to sales as a result of the plummeted sales in China due to the virus outbreak.