U.S. Stocks Down Sharply over Ebola Fears

U.S. stocks dropped more than 1 percent on Wednesday as the first diagnosis of Ebola in a patient in the United States spooked investors, economic data pointed to uneven growth, and the Russell 2000 index entered correction territory.

The Ebola news pressured shares of airlines and other transportation names, with the NYSE ARCA Airline index .XAL falling 3.1 percent, the biggest percentage decline since January. The Dow Jones transportation average .DJT dropped 2.5 percent, its biggest daily percentage drop since February.

Small-cap stocks extended recent losses and the Russell 2000 .TOY closed more than 10 percent below its closing high of 1,208.65 in early March, which puts the index in correction territory. It was down 1.5 percent on the day.

Reuters

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