The financial world is reeling today as stocks fell nearly across the board while nervous investors assessed the growing coronavirus threat.
Stocks fell more than 1,000 points at several times and closed down 1,031.61 points as investors responded to news of the virus spreading to additional countries. Some say the virus threat could cause a worldwide economic slowdown.
It ended up the third-biggest stock decline in history, and Marketwatch discussed what to expect next.
Airline stocks Delta and American were both down more than 6.5% while United traded 3.3% lower. Shares of casino operators Las Vegas Sands and Wynn Resorts dropped at least 3.8% each. MGM Resorts slid 5%.
“The market had been sanguine about the spread of the coronavirus,” Quincy Krosby, chief market strategist at Prudential Financial, told CNBC.
Online brokers Fidelity and Charles Schwab experienced technical difficulties that coincided with the initial 800-point drop in the Dow Jones Industrial Average, CNBC also reported.
U.S. stocks have remained very strong since the initial coronavirus outbreak. The S&P 500 and technology-heavy Nasdaq Composite set records as recently as Wednesday but have dropped 4% and 5.3%, respectively, over the past three sessions, the Wall Street Journal reported.
As of mid-afternoon Monday, the total confirmed cases of coronavirus stood at 77,150, with a cumulative death toll of 2,592. The virus is no longer mostly in Asia. Italy has reported six coronavirus deaths and an accelerating number of cases.
The World Health Organization says the virus is not yet a pandemic.
Meanwhile, uber-investor Warren Buffet said the market could be on its way to a significant tumble, with the virus being one of many reasons.
“Anything can happen to stock prices tomorrow,” Buffet said in his annual letter, released over the weekend. “Occasionally, there will be major drops in the market, perhaps of 50% magnitude or even greater.”
InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at firstname.lastname@example.org. Follow him on Twitter @INNJohnH.
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