Dow drops 300 points following renewed coronavirus fears

The Dow Jones Industrial Average dropped more than 315 points, or 1.1 percent, in morning trading Friday as concerns about the effects of the coronavirus grew.

The drop took the stock index below 29,000 for the first time in 11 days. Other indexes also fell from record highs they hit earlier in the week.

The coronavirus has killed more than 2,000 people in China and infected more than 75,000 people globally. An analysis from Goldman Sachs this week noted that the stock market could be due for a correction as it continued to fly high despite the virus’s spread. Stocks may be flying high in part because of low yields in the bond market.

Larry Kudlow, President Trump’s top economic adviser, told CNBC Friday that low bond yields were not a sign of economic softness.

“I think you have a lot of mood swings here, and I don’t think it reflects the fundamentals,” said.

President Trump is counting on a soaring stock market and strong economy to boost his chances at reelection chances in November.