Stocks tumbled across the globe on Wednesday on concerns that rising COVID-19 cases in Europe, the United States and elsewhere will damage already-fragile economic recoveries, while the U.S. dollar rose on safe-haven bids.

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Treasury yields fell alongside the price of oil and gold was under pressure from the rising dollar.

On Wall Street, the energy and technology sectors of the benchmark S&P 500 were among the hardest hit.

"Whether you call it a continuation of the pandemic or a third wave of new case discovery - it is the largest concern," said Art Hogan, chief market strategist at National Securities in New York.

"Unless and until we get through this pandemic, it is hard for investors to imagine a better economic time."

The Dow Jones Industrial Average fell 808.89 points, or 2.95 percent, to 26,654.3, the S&P 500 lost 97.21 points, or 2.87 percent, to 3,293.47 and the Nasdaq Composite dropped 333.79 points, or 2.92 percent, to 11,097.56.

European shares touched their lowest since late May as Germany and France prepared to announce restrictions approaching the level of the lockdowns in the spring, as COVID-19 deaths across Europe jumped almost 40% in a week.

The pan-European STOXX 600 index lost 3.29 percent, touching its lowest level since May. MSCI's gauge of stocks across the globe shed 2.57 percent.

Asian shares lost ground after initially showing some resilience, in part due to more limited COVID-19 outbreaks and better recoveries in the region's major economies.

Emerging market stocks lost 1.18 percent. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.69 percent lower, while Japan's Nikkei lost 0.29%.

Concerns over a rising wave of COVID-19 infections played out in currency and bond markets, too, with the euro slumping against the dollar.

The dollar index rose 0.368 percent, with the euro down 0.49 percent to $1.1737.

The Japanese yen strengthened 0.16 percent versus the greenback to 104.26 per dollar, while Sterling was last trading at $1.3, down 0.33 percent on the day.

Adding to the mood of uncertainty was the November 3 US presidential election.

Former Vice President Joe Biden has enjoyed a consistent lead over President Donald Trump ahead of the vote. Investors cautiously bet on his victory and a possible "blue wave" outcome, where Democrats control both chambers of Congress.

UBS strategist Vassili Serebriakov said a Biden administration would be seen as de-escalating trade tensions with traditional allies such as Europe and Canada, as well as China, which should improve market sentiment overall and weigh on the dollar as a safe haven.

Treasury yields fell as traders moved away from risk assets.

Benchmark 10-year notes last rose 3/32 in price to yield 0.7693%, from 0.778 percent late on Tuesday.

The rising coronavirus infections weighed on oil prices on fears of a supply glut and weaker fuel demand.

"Crude oil is under pressure from the increase in COVID-19 cases, especially in Europe, and a larger than expected storage build (in the U.S.)," said Robert Yawger, director of energy futures at Mizuho in New York.

U.S. crude recently fell 5.26 percent to $37.49 per barrel and Brent was at $39.26, down 4.71 percent on the day.

Spot gold dropped 1.7 percent to $1,875.36 an ounce. Silver fell 5.74 percent to $23.14.

Note: The story was updated to incorporate latest developments.

First Published:Oct 28, 2020 7:49 PM IST