Shares of Dave & Buster's (NASDAQ: PLAY), Marriott International (NASDAQ: MAR), and Darden Restaurants (NYSE: DRI) were all falling sharply on Wednesday as investors continue to panic over the spread of COVID-19 and its potential impact on the economy. After a surge yesterday as President Donald Trump pushed for federal stimulus including a payroll tax cut, stocks were falling broadly again today as investors seemed to lose faith in the government's ability or desire to intervene in the crisis.
Dave & Buster's, Marriott, and Darden may not seem to have much in common, but all three function as gathering places, and investors believe that Americans will avoid such locales if the outbreak spreads. A number of marquee events like South by Southwest and the Coachella Music Festival have already been canceled or postponed, and some medical authorities are advocating "social distancing." Additionally, companies like these have been confronted with demands to provide sick leave for employees who can't come into work, which could add to costs.
As of 3 p.m. EDT, Dave & Buster's was down 20%, while Marriott had given up nearly 8%, and Olive Garden parent Darden was off 14%. At the same time, the S&P 500 was down 5%.