Dow closes in bear territory, first since 2008 crisis

By Michael Hernandez

WASHINGTON (AA) - U.S. markets closed sharply down again with the Dow Jones industrial average falling 1,300 points Wednesday, off 20% from highs set a month ago, the first such drop since the 2008 financial crisis.

With the Dow down more than 5.8%, officially closing in bear market territory, the S&P 500 shed nearly 4.9% and the Nasdaq dipped 4.7%. The losses put the S&P 500 on the precipice of also falling into bear market territory.

A bear market begins when an index closes 20% down from a recent high.

Investors are worried about the possibility that the spread of the coronavirus could prompt a global slowdown or recession.

In a bid to calm nerves, U.S. President Donald Trump said he will address the nation later Wednesday. The president said he will be making economic and health announcements.

"We are going to get the problem solved," he said during a White House meeting with banking executives. "We are talking about various forms of stimulus."

But this is unclear with Democrats holding the House of Representatives and Republicans controlling the Senate in Congress.

The World Health Organization (WHO) declared earlier Wednesday the virus outbreak a global pandemic as cases continued to swell in Italy, Iran, Qatar, the U.S. and elsewhere.

In China, however, signs were beginning to indicate the virus may be coming under control after emerging in that country in December.

The virus originated in the city of Wuhan, and has since spread to more than 100 countries.

The global death toll is nearly 4,300, with more than 118,000 confirmed cases, according to the latest WHO figures.