Dow drops almost 3,000 points

The Dow plunged nearly 3,000 points Monday despite the Fed's emergency action. The central bank's surprise interest rate cut and pledge to buy more bonds only served to fuel investor worries over a potential recession from the coronavirus pandemic.

Stocks suffered their biggest one-day drop since 1987. The Dow shed almost 13%. The S&P plummeted 12%.

Eric Clark is a portfolio manager at Rational Funds.

SOUNDBITE: ERIC CLARK, PORTFOLIO MANAGER, RATIONAL FUNDS (ENGLISH) SAYING:

"It's a one-sided market. Right now, buyers are completely absent. Algorithms and general sellers have complete control, and so in a one-sided market that's very illiquid, you can push the market any way you want short-term, which his causing a lot of this obvious concern for people."

As investors dumped risky assets to raise cash or sought safety in fixed income, Treasury bond yields fell. That hurt interest-sensitive financial stocks. Shares of Citigroup, Bank of America, and Synchrony Financial dropped sharply after the biggest U.S. banks said they would stop buying back their own shares and use that capital to lend.

Another steep plunge in oil prices yanked down Apache, Chevron and other energy shares.

As the coronavirus spreads fear of a recession, most of the S&P 500's gains under President Donald Trump have disappeared.