US open: Stocks head south as coronavirus continues to batter markets

US stocks opened sharply lower on Wednesday as investors awaited more details on the White House's rumoured economic stimulus plans.

As of 1545 GMT, the Dow Jones Industrial Average was down 4.35% at 23,928.94, while the S&P 500 was 4.02% softer at 2,766.29 and the Nasdaq Composite came out the gate 3.64% weaker at 8,040.69.

The Dow opened 1,089.22 points lower on Wednesday, all but erasing yesterday's gains as coronavirus fears continued to roil shares.

Wednesday's focus was still centred on comments made by Donald Trump towards the end of the previous session. The President suggested a 0% payroll tax rate that could last until the end of 2020 in order to combat any potential economic fallout from the coronavirus outbreak.

However, no dates were offered as to when such policies would be implemented and Senator Chuck Grassley, who heads up the Senate Finance Committee, said any such cut would need to be examined.

Discussing the mood amongst traders on Wednesday, CMC Markets' Michael Hewson said: "Investors lost confidence that the US administration would be able to deliver a timely fiscal boost and President Trump went missing from an important White House briefing.

"Once again the focus is back on the politicians to deliver a fiscal response. For the last ten years, politicians have looked the other way as central banks have tried to take the strain on financial markets. The time to act is now and a failure to act on the part of politicians could well see markets deliver a brutal response."

In addition to the uncertainty surrounding any potential fiscal stimulus, a reduction in travel demand and rising coronavirus cases left airline and cruise line stocks under pressure - with American, Delta, United and JetBlue all down more than 2% after the bell, while Norwegian Cruise Line and Carnival sunk 4.4% and 7% at the open, respectively.

In election news, former vice president Joe Biden has secured a solid lead over Vermont Senator Bernie Sanders in the race to become the next Democratic presidential nominee. Biden recorded convincing victories in party primaries in Missouri, Mississippi, Idaho and Michigan.

Oil prices and were down at the open on Wednesday, with West Texas Intermediate crude dropping 2.76% to $33.41 per barrel and Brent crude down 2.69% at $36.22 a barrel. The yield on the benchmark 10-year US Treasury note was slightly higher 0.77%.

Also in focus was news that the Bank of England cut its benchmark rate by 50 basis points to 0.25%, taking cues from the Federal Reserve which made the same move earlier in the month.

On the macro front, the cost of living slipped less than expected last month as a jump in food costs more than offset a large decline in energy prices.

According to the Department of Labor, the headline rate of consumer prices in the US edged up at a 0.1% month-on-month and 2.3% year-on-year clip in February. That was less than the 2.5% rise observed in January but ahead of the 2.2% anticipated by economists.

Still to come, last month's budget statement will be posted at 1800 GMT.

No major corporate earnings were scheduled for release on Wednesday.