Mid-Afternoon Market Update: Dow Tumbles 800 Points; Superconductor Technologies Shares Spike Higher

Toward the end of trading Tuesday, the Dow traded down 3.03% to 25893.26 while the NASDAQ fell 3.13% to 8,672.22. The S&P also fell, dropping 2.87% to 3,001.43. Coronavirus cases continued to rise outside China. South Korea confirmed 374 new coronavirus cases today, taking total number to 5,186. In Iran, total number of infections surged by 835 to 2,336. Mainland China reported just 125 new confirmed cases of coronavirus on March 2.

Leading and Lagging Sectors

Real estate shares climbed 0.1% on Tuesday. Meanwhile, top gainers in the sector included Mack-Cali Realty Corporation CLI, up 5%, and Q&K International Group Limited QK, up 6%.

In trading on Tuesday, financial shares fell 3.8%.

Top Headline

In an emergency measure, the U.S. Federal Reserve cut interest rates by 0.5% on Tuesday, citing concerns about the negative economic impact of the COVID-19 coronavirus outbreak. The Fed lowered its fed fund target rate range from between 1.5% and 1.75% to a new target range of between 1% and 1.25%.

The move was widely expected to come some-time this month. All 10 Fed members voted unanimously for the 0.5% rate cut.

Equities Trading UP

Omeros Corporation OMER shares shot up 38% to $17.39 after the company reported Narsoplimab HSCT-TMA results surpassed the FDA-agreed efficacy threshold. The company also reported upbeat quarterly sales.

Shares of GenMark Diagnostics, Inc. GNMK got a boost, shooting 21% to $4.25 after the company reported Q4 earnings results.

Superconductor Technologies Inc. SCON shares were also up, gaining 101% to $0.3954 after the company announced a merger agreement with Allied Integral United.

Equities Trading DOWN

Novan, Inc. NOVN shares tumbled 21% to $0.3701. After the close Monday, Novan filed for a 14 million share offering of common stock and warrants.

Shares of Daxor Corporation DXR were down 19% to $11.47. Daxor shares rose 65.7% on Monday after the company said hospitals are using its blood volume analyzer to prevent coronavirus deaths.

China Pharma Holdings, Inc. CPHI was down, falling 19% to $0.9198. China Pharma shares jumped 100% on Monday after the company announced a wash-free sanitizer in response to the coronavirus.

Commodities


In commodity news, oil traded up 1% to $47.22, while gold traded up 2.5% to $1,634.40.

Silver traded up 2.3% Monday to $17.13, while copper fell 0.9% to $2.5715.

Euro zone

European shares closed higher today. The eurozone’s STOXX 600 rose 1.37% the Spanish Ibex Index rose 0.80%, while Italy’s FTSE MIB Index climbed 0.43% Meanwhile, the German DAX gained 1.08%, and the French CAC 40 rose 1.12% while UK shares rose 0.95%.

Economics

Chicago Federal Reserve chief Charles Evans is set to speak at 6:30 p.m. ET.