Stock Market Today: Dow Drops 943 Points as Investors Storm the Exits
America's major indices suffered significant drops Wednesday as COVID-19's cloud of uncertainty cast a larger shadow over the economy.


So much for the market's best day of the year. Oct. 28, on average the S&P 500's best-performing day over the past 70 years, was instead one of 2020's worst as COVID-19 concerns continued to flare up in the U.S. and Europe.
Cities such as Chicago and Newark are renewing restrictions on businesses and public gatherings amid not just record-high new caseloads in America, but rising hospitalizations and deaths as well. In Germany, restaurants and theaters will be shut down for four weeks, and other European countries are stepping up their own measures to fend off a second wave.
Big Tech suffered from additional downward pressure, as the CEOs of Facebook (FB, -5.5%), Twitter (TWTR, -5.3%) and Google parent Alphabet (GOOGL, -5.5%) faced Congressional inquiries about moderating user content.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The S&P 500 did not come close to meeting its average 0.54% gain on Oct. 28, instead plunging 3.5% to 3,271.
Other action in the stock market today:
- The Dow Jones Industrial Average declined 3.4% to 26,519.
- The Nasdaq Composite lost 3.7% to 11,004.
- The Russell 2000, best of the four major indices Wednesday, still dropped 3.0% to 1,543.
For Some Investors, It Might Be Time to Let Go
"We are experiencing the storm before the calm," Jamie Cox, managing partner for Virginia-based Harris Financial Group, says about today's market selloff, adding that "November has the potential to settle some big, outstanding issues."
But just how stormy could things get? One particularly bearish outlook comes from James McDonald, CEO of California-based Hercules Investments: "Expectations that COVID-19 would be under control by now have vanished, and we see stocks falling by another 10% to 20% from here."
"We believe that if the S&P 500 breaks below 3,200 before the election, its next move may be down another 12% to 2,890."
Even if the market as a whole doesn't plunge that much in the uncertain days, weeks and months to come, many weaker stocks might drop calamitously.
Whether you want to raise cash to buy dips or simply want to limit your downside exposure, it pays to prune stocks in your portfolio that are liable to underperform the market. These nine stocks, for instance, have analysts raising caution flags.
Don't forget to scan the dividend-income portion of your portfolio, too. These 15 dividend-paying stocks have largely struggled in 2020, and their payouts, even while generous in some cases, simply don't appear to be enough to compensate investors for the mounting risks they still face.
Kyle Woodley was long FB as of this writing.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
AI Goes To School
The Kiplinger Letter Artificial intelligence is rapidly heading to K-12 classrooms nationwide. Expect tech companies to cash in on the fast-emerging trend.
-
Where to Invest in an Uncertain Market
In an uncertain market, you can still pocket juicy payouts ranging from 4% to 14%, depending on risk.
-
My Three-Day Rule for Investing: And If it Applies Now
Stock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Is It Time to Invest in Europe?
Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?
-
Stock Market Today: Dow, S&P 500 Extend Win Streaks to 8
Strong earnings results for Magnificent 7 stocks Microsoft and Meta fueled upside in the equities market.
-
AI vs the Stock Market: How Did Value Stocks, Gold and PayPal Perform in April?
AI is a new tool for investors to use for data analysis, but can it beat the stock market? Here's how a chatbot's stock picks fared in April.
-
Stock Market Today: Great Power Affairs Mesmerize Markets
The U.S. and China are at least talking about talking about tariffs, and investors, traders and speculators are showing a little less fear.
-
Stock Market Today: Stocks Enjoy a Fed Day Relief Rally
The question now is whether Jerome Powell and other policymakers can get the balance right given all the new noise.
-
Stock Market Today: Stocks Skid Into Another Risk-Off Turn
The promise of the AI revolution can't overcome flickering hopes for a "Fed put."
-
Stock Market Today: Dow Gains After Nike Gets Upgraded
Jefferies thinks Nike's new CEO will spark a turnaround in the beaten-down blue chip.