Stocks drop amid concerns over long downturn

Stock markets dropped Monday morning amid concerns that the economic downturn from the coronavirus will be longer and deeper than feared.

The Dow Jones Industrial Average fell 230 points, or 1 percent, and the S&P 500 dipped 25 points, or 0.8 percent, in the first minutes of trading.

The dip follows a more exuberant week that saw stocks on the rise as states began opening up from lockdowns.

Over the weekend, South Korea was forced to close hundreds of night clubs and bars after more than 50 people were infected. The government identified a 29-year-old man who had tested positive after attending five nightlife establishments over the previous weekend.

The incident led to an uptick in South Korea’s COVID-19 cases after what had been considered a successful effort to contain the virus, and sent warning signals about how difficult it might be to keep the virus in check as cities and states attempt to reopen.

Two confirmed cases among White House staffers also shook confidence about how businesses that lack the same access to testing as the White House will be able to reopen safely.

But oil markets, which dipped into unprecedented negative territory last month, looked up as Saudi Arabia announced plans to further cut production by a million barrels a day. The historic downturn in oil had pulled markets down at the time.