Dow Jones Industrial Average drops 525 points

The Dow slid 525.05 points, or 1.9%, to 26,763.13. The S&P 500 dropped 2.4% to close at 3,236.92. The Nasdaq Composite closed 3% lower at 10,632.99. Renewed pressure in key tech stocks dragged down the broader market.

‘FAANGM’ lower once again

AmazonApple and Netflix were all down by more than 4% to lead lower the group of tech stocks known as “FAANGM.” Facebook slid 2.3% and Alphabet dipped 3.5%. Microsoft pulled back by 3.3%. Those declines added to already steep FAANGM losses for the month.

Virus and stimulus uncertainty

Investors have faced a slew of headwinds this month, including a rising number of global coronavirus cases and uncertainty around further U.S. fiscal stimulus. Earlier this week, the U.K. said it would impose stricter measures to curb the coronavirus outbreak. To be sure, President Donald Trump said the U.S. would not be implementing a second round of lockdowns. On the stimulus front, lawmakers are still struggling to move forward with a new package. Federal Reserve Chairman Jerome Powell told a congressional panel Wednesday that further fiscal stimulus is still needed for the U.S. economic recovery to continue.

What happens next?

Weekly jobless claims are set for release Thursday morning along with new home sales numbers.