US stocks end sharply lower, Dow down 1.9%, Nasdaq down 3%

NEW YORK (AFP) - Wall Street stocks tumbled on Wednesday (Sept 23) as a September selloff resumed amid worries over a coronavirus second wave and an increasingly contentious US presidential election.

The Dow Jones Industrial Average ended down 1.9 per cent, or 525 points, at 26,764.25.

The broad-based S&P 500 dropped 2.4 per cent to 3,236.92, while the tech-rich Nasdaq Composite Index shed 3 per cent to 10,632.99.

"The mega caps started weak and there was just no buying support," said Briefing.com analyst Patrick O'Hare.

O'Hare said fresh restrictions in Europe in response to higher coronavirus cases raised worries about a similar dynamic in the United States.

Investors are also disappointed that Washington lawmakers haven't reached an agreement on more stimulus and uneasy over speculation that the US presidential election could drag on due to slow vote counts or legal challenges, he said.

The Business Roundtable on Wednesday joined a chorus of groups and lawmakers calling for more stimulus spending, saying the failure to act risks "long-term damage" to the US economy.

Tesla sank 10.3 per cent after it said it was developing a US$25,000 (S$34,000) self-driving electric car model with upgraded battery technology. However, chief executive Elon Musk signalled the model would not be available for about three years.

Some analysts said the presentation underscored Tesla's technological advantage over other companies, but others said the announcement showed that Tesla is evolving into a manufacturer and losing some of its lustre as a tech company.

Nike shot up 8.8 per cent after the company reported blowout quarterly earnings on strong digital sales and its CEO cheered the return of pro sports. The athletic apparel giant notched an 82 per cent increase in digital sales.

Johnson & Johnson advanced 0.2 per cent as it announced it was entering the final Phase 3 stage of its Covid-19 vaccine clinical trial following positive results in earlier stages.