Stocks fall amid worries on virus, economy

NEW YORK (AP) — Stocks slumped on Wall Street Thursday amid worries that recent improvements in the economy may be set to stall as coronavirus cases continue to climb. The S&P 500 lost nearly all of Wednesday’s gains, with the sharpest drops hitting oil producers and other stocks whose fortunes are most closely tied to a reopening and strengthening economy. Treasury yields fell in a sign of continued caution in the market. Smaller stocks sank more than the rest of the market, which often happens when investors are downgrading their expectations for the economy.

THIS IS A BREAKING NEWS UPDATE. AP's earlier story appears below.

Most stocks are slumping on Wall Street Thursday amid worries that recent improvements in the economy may be set to stall as coronavirus cases continue to climb.

The S&P 500 was 0.4% lower in late trading, after paring earlier losses, with the sharpest drops hitting oil producers, banks, airlines and other stocks whose fortunes are most closely tied to a reopening and strengthening economy. Treasury yields also fell in a sign of continued caution in the market.

The Dow Jones Industrial Average was down 298 points, or 1.1%, at 25,769, as of 3:08 p.m. Eastern time. Smaller stocks sank more than the rest of the market, which often happens when investors are downgrading their expectations for the economy. The Russell 2000 index of small-cap stocks lost 1.7%.

Tech stocks were holding up better than the rest of the market, though, as investors continue to bet they can keep growing almost regardless of the economy's strength. They helped the Nasdaq composite to a gain of 0.6%. They also helped the S&P 500 pare its loss through the afternoon, after being down as much as 1.7%.

“The broad equity market is navigating through a zone of uncertainty,” said Terry Sandven, chief equity...