US stocks plummet into correction territory on coronavirus fears — and the S&P 500 is headed for its worst week since the 2008 financial crisis

• All major US equity indexes plunged on Thursday, with the S&P 500 and Dow Jones Industrial Average entering correction territory.
• That means they've both fallen more than 10% from recent highs.
• The Stoxx Europe 600 also entered correction territory. 
• The sell-off comes amid worsening news surrounding the coronavirus outbreak.
• Visit Business Insider's homepage for more stories.

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The coronavirus-driven stock sell-off hit a critical benchmark on Thursday as all major US equity indexes entered correction territory, which indicates they've fallen more than 10% from recent highs.

It marks the first correction for US stocks since December 2018. The S&P 500 is on track for its worst weekly decline since the 2008 financial crisis.

The latest leg down comes after the Centers for Disease Control and Prevention warned on Wednesday that there was a risk of community spread of the coronavirus. A California patient contracted the virus and had traveled to exposed regions or knowingly made contact with someone who had the virus, according to the CDC.

The World Health Organization said on Thursday that the outbreak could become a pandemic. The fast-spreading disease has already killed 2,800 and infected 82,000.

Here's how major US indexes were trading midmorning:

S&P 500: -1.60%, down as much as 3.5% at intraday lows.

Dow Jones Industrial Average: -1.70%, down as much as 3.6%.

Nasdaq composite: -2.03%, down as much as 4%.

Read more: Robert Shiller, Rick Rieder, and 18 more of the brightest minds on Wall Street reveal the most important charts in the world

The Stoxx Europe 600 also entered correction territory on Thursday, down more than 10% from its February 2019 high.

Elsewhere in markets, yields on the 10-year Treasury note hit a record low as investors fled to safety. Oil prices have also unraveled amid the global risk-off environment, hitting their lowest level in 12 months.

The warnings from major Wall Street institutions have been fast and frantic. Goldman Sachs warned on Thursday that the S&P 500 could quickly fall another 7% from Wednesday's close and also forecast flat profit growth for US firms throughout the rest of 2020.

Strategists at Citigroup and RBC Capital Markets have even gone as far as to warn of an equity bear market — one that would derail the S&P 500's nearly 12-year expansion.

Read more: These are the 3 best trades to help protect investors from coronavirus turmoil, UBS says