It actually dropped about 300 points in about an hour between 2:50 and 3:50. I don’t think it had anything to do with coronavirus, though. Crazy turnarounds in the last hour of trading aren’t that unusual due to purely technical reasons, like day traders closing out their positions and some automated trading going on.
Business reporters love making up fictitious reasons for intraday market moves, though.
I think most market participants are trading on the belief that Coronavirus is on its way out and there will be a strong recovery, but are pricing in some risk, too.
The Pack Knight wrote: “Business reporters love making up fictitious reasons for intraday market moves, though.”
It’s not so much that they love making up fictitious reasons but because they get paid for sounding like they know what’s going on.