Economy

Outbreak: Dow Drops 600 Points on Fears of Coronavirus and Global Growth

Outbreak: Dow Drops 600 Points on Fears of Coronavirus and Global Growth”

A lot of pent-up selling has likely built up in the meantime.

PRIME RESULTS: Online retailer Amazon surged 8.3% after blowing past Wall Street's fourth-quarter profit forecasts.

"We expected to see global growth", she said.

The S&P 500 posted 33 new 52-week highs and 12 new lows; the Nasdaq Composite recorded 54 new highs and 121 new lows.

The number of people sickened by the new coronavirus in China now exceeds the global total infected with severe acute respiratory syndrome, or SARS, which killed almost 800 people after emerging from southern China in late 2002 and spreading into 2003.

Chinese stock markets will reopen Monday for the first time since January 23, resuming trading after the Lunar New Year holiday break.

"History suggests that unless the end of the world is going to be caused by this flu-like virus, it will prove to be only a slight headwind for the global economy, ' Carl Weinberg, chief economist at High Frequency Economics, wrote in a research report". Some U.S. companies are now banning employees from visiting China, while the State Department issued a travel advisory Thursday urging Americans not to travel to mainland China.

The move by USA airlines helped deepen a slide in oil prices.

US stocks ended sharply lower on Friday, with the Dow plunging more than 600 points amid a steep market sell-off led by energy shares.

Before the week began, the S&P 500 had been on one of its longest stretches without a gain or loss of more than 1% since 1969.

The outbreak also comes as some big manufacturers have exhibited signs of strain as their earnings results poured in this week.

"The economic and market impact now are becoming much more significant and those two sectors are probably the most important to keep an eye on", said Samana.

Exxon Mobil Corp. and Chevron Corp. posted the weakest results in years amid disappointing numbers in nearly all business lines.

Wall Street's major averages tumbled more than 1.5 percent on Friday, sealing its worst week in six months, as sluggish USA economic data, a mixed batch of corporate earnings and the spreading coronavirus outbreak fueled concerns about global growth.

Oil prices ditched 54 cents to $51.60 US a barrel. Brent crude oil, the worldwide standard, picked up 27 cents to $57.60 per barrel. Wholesale gasoline was unchanged at $1.49 per gallon.

Some investors said the recent declines were healthy, given how quickly major indexes had clinched record after record in recent months.

The euro rose 0.53% at $1.1091 while the pound sterling gained 0.85% at $1.3204.

The Japanese yen appreciated 0.6% to 108.35 per dollar.

The euro increased 0.6% to $1.1094.

Asian markets were mixed, with Hong Kong's Hang Seng sliding 0.5 percent and Japan's Nikkei adding 1 percent.



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