By 
Fear of COVID-19 coronavirus spreading globally
is driving down US stock markets, with the Dow Jones Industrial Average sliding
by almost 900 points before recovering slightly to close at 27,081.36.
is driving down US stock markets, with the Dow Jones Industrial Average sliding
by almost 900 points before recovering slightly to close at 27,081.36.
Nasdaq composite dropped by 255 points (2.77
percent) by Tuesday closing, while the S&P 500 was down 97 points (3
percent).
percent) by Tuesday closing, while the S&P 500 was down 97 points (3
percent).
Tuesday’s downturn follows
Monday’s numbers, when the Dow lost more than 1,000 points and both S&P 500
and Nasdaq were down by more than 3 percent – wiping out most of the gains
since the beginning of the year.
Monday’s numbers, when the Dow lost more than 1,000 points and both S&P 500
and Nasdaq were down by more than 3 percent – wiping out most of the gains
since the beginning of the year.
The coronavirus epidemic
in China has already disrupted global supply chains, but as the virus spreads
to the Middle East and Europe, the economic fallout is growing, driving
investors to sell.
in China has already disrupted global supply chains, but as the virus spreads
to the Middle East and Europe, the economic fallout is growing, driving
investors to sell.
Dow never goes up 1,800 points in 2 days. But it will take 2-3
months to get it back. Funny how that works
months to get it back. Funny how that works
—
Ken Kal (@KenKalDRW) February 25, 2020
Ken Kal (@KenKalDRW) February 25, 2020
It takes a “brave soul to be
buying these markets,” Chris Weston, head of research at the
Australian forex broker Pepperstone, told MarketWatch. “How do we model risk when we can’t even model economics with any
confidence?”
buying these markets,” Chris Weston, head of research at the
Australian forex broker Pepperstone, told MarketWatch. “How do we model risk when we can’t even model economics with any
confidence?”
President
Donald Trump’s top economic adviser Larry Kudlow waved off the economic
concerns, however.
Donald Trump’s top economic adviser Larry Kudlow waved off the economic
concerns, however.
“This is a human tragedy,” Kudlow
told CNBC’s Kelly Evans on Tuesday, but “I
don’t think it’s going to be an economic tragedy at all. There’ll be some
stumbles.”
told CNBC’s Kelly Evans on Tuesday, but “I
don’t think it’s going to be an economic tragedy at all. There’ll be some
stumbles.”
He was also optimistic that the US will not be affected, saying
that that the Trump administration has “contained
this, I won’t say airtight but pretty close to airtight.”
that that the Trump administration has “contained
this, I won’t say airtight but pretty close to airtight.”
While only 14 cases of the the coronavirus have been officially
registered in the US, the Centers for Disease Control and Prevention (CDC)
warned on Tuesday that its spread is only a matter of time and that Americans
should prepare for “severe” disruptions
of daily life in the coming weeks.
registered in the US, the Centers for Disease Control and Prevention (CDC)
warned on Tuesday that its spread is only a matter of time and that Americans
should prepare for “severe” disruptions
of daily life in the coming weeks.
News source: rt.com
