The Dow Fell 2,352 Points Because the Bear Claims the S&P 500 and Nasdaq, Too By Evie Liu March 12, 2020 5:43 pm ET Text size The Dow posted its worst one-day percentage drop since the 22.6% tumble on Oct. 19, 1987, which is known as Black Monday, and now sits nearly 28% below its all-time high. Another selloff has now pushed both the S&P 500 index andNasdaq Composite into bear markets a day after the Dow Jones Industrial Average. It took only 16 trading days for the S&P 500 to decline 20% from a recent high, which is also the index’s all-time high. The Dow also posted its worst one-day percentage dropsince the 22.6% tumble on Oct. 19, 1987, which is known as Black Monday, and now sits nearly 28% below its all-time high. The Dow Jones Industrial Average plunged 2,352.60 points, or 9.99%, to close at 21200.62. The S&P 500 slumped 260.74 points, or 9.51%, to end at 2480.64, and the Nasdaq Composite fell 750.25 points, or 9.43%, to close at 7201.80. The index briefly rebounded in the afternoon after the Federal Reserve Bank of New York announced an additional $1.5 trillion in new liquidity to help address “highly unusual disruptions” in the Treasury market. The Fed plans to offer banks at least $1 trillion of additional short-term cash loans each week and also expand the scope of the $60 billion in bond purchases it is tasked with making each month through April. This marks the third time this week that the New York Fed has increased the size of its interventions amid the market turmoil. It now offers $175 billion in overnight secured cash loans, up from $100 billion last week; and it is offering $45 billion of two-week secured cash loans, up from $20 billion last week. The market’s relief didn’t last long. After a brief recovery around 1 p.m., stocks fell back to the deep red for the rest of the day. Investors have been skeptical whether the monetary stimulus alone would have much near-term success in mitigating coronavirus shocks, given the fear and uncertainty surrounding the magnitude and duration of the outbreak. Market participants are still waiting for the government’s fiscal stimulus plans, which was not revealed by the time of President Donald Trump’s live-television address on Wednesday night. Instead, Trump announced thattravel from Europe to the U.S. would be suspended for 30 days starting Friday, and blamed Europe for not curbing travel from China. EDITOR'S CHOICE Italy, the coronavirus epicenter of Europe, is under full lockdown and recently ordered all non-essential shops—including bars, restaurants, and beauty parlors—to shut doors until at least March 25. The new restrictions came after the country reported 196 new deaths caused by the coronavirus on Wednesday, the highest daily increase in deaths for any country since the outbreak began. In the U.S., the epidemic’s disruption continues to escalate. The NBA suspended its 2020 season indefinitely on Wednesday night after one player was tested positive for the coronavirus, followed by the suspension of NHL season and MLB’s spring training on Thursday. Amid the market turmoil, American companies are also rushing to draw down their credit lines and bulk up cash reserves, fueling worries about credit market stress. Lawmakers are still in talks to reach a fiscal stimulus deal. House Democrats released a bill late Wednesday that includes paid leave for people impacted by the virus, expanded unemployment insurance, and required health-insurance coverage for the disease’s diagnostic testing, according to The Wall Street Journal. But Republicans immediately raised objections. Talks continued. Write to Evie Liu at evie.liu@barrons.com