EDITOR'S NOTE
The Dow Jones Industrial Average made several attempts to rally on Wednesday, only to be discouraged by new coronavirus headlines.
The Dow spiked more than 460 points at the high point of the day, but then fell, bounced around and ended the day with a loss. Investors are increasingly concerned the epidemic will curb global economic growth and corporate earnings.
“Unfortunately, I think this is going to turn into a full-blown correction,” David Bianco, chief investment strategist for the Americas at DWS, told CNBC’s "Squawk Box."
The 10-year Treasury yield also tried to stage a recovery, but investors continued to flee to the relative safety of bonds, driving the yield to a new low. CNBC's Jeff Cox writes that bond yields have nowhere to go but down as long as the coronavirus outbreak rages around the world.
Of course, it's not just the coronavirus, notes Robert Tipp, chief investment strategist and head of global bonds for PGIM Fixed Income. Nations have been lowering bond rates for years to combat slowing economic growth.
“The United States cannot be well above 1%” as other central banks continue to cut, Tipp said.
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