Dow Jones FALLS more than 900 points while fears arise about the outbreak of the corona virus in China
The Dow Jones Industrial Average fell more than 900 points at the start of trading on Monday because investors feared that the deadly coronavirus outbreak in China would become a global pandemic.
Early on Monday morning, which means that the market is likely to open with a steep fall once the opening bell rings on Wall Street.
S&P 500 futures also fell 1.3 percent, while the Nasdaq futures decreased 1.8 percent.
Shares shaved Monday in Asia following reports of an increase in new virus cases outside of China.
The fear arose on Monday that the outbreak of the corona virus in China will grow into a pandemic with disruptive and deadly consequences for countries around the world, following a sharp increase in infections in South Korea, Italy and Iran.
The decline followed a Friday sale on Wall Street.
The Dow Jones Industrial Average future fell 400 points early Monday morning, meaning that the market is likely to open with a steep fall once the opening bell rings on Wall Street
A woman walks past an electronic board with the Hong Kong stock index on Monday outside a local bank in Hong Kong
The Kospi in South Korea fell 3 percent to 2,098.37, while the S&P ASX / 200 in Sydney lost 2.3 percent to 6,975.20.
Hang Seng in Hong Kong fell 1.5 percent to 26,903.84 and the Shanghai Composite index lost 0.3 percent to 3,029.22.
Benchmarks in Jakarta, Taiwan and Thailand fell by more than 1 percent and the Indian Sensex lost 1 percent to 40,755.23.
A new big leap in new cases was reported in South Korea on Monday, a day after the president called for “unprecedented, powerful” steps to fight the outbreak that is increasingly confusing attempts to stop the spread.
The hope that the outbreak was contained was premature, Mizuho Bank said in a comment: “And indeed, the fear of secondary infections spreading outside of China has come home, causing risky assets to fall into a downward spiral and a wave of places of refuge for safe -Haven. ‘
Shares fell and bond prices jumped on Wall Street on Friday amid signs that the viral outbreak weighs on US companies.
The S&P 500 fell by 1.1 percent to 3,337.
The industrial average of Dow Jones fell by 0.8 percent to 28,992.
The Russell 2000 index of smaller company shares gave up 1.1 percent, while the technically heavy Nasdaq lost 1.8 percent to 9,576.
Technology companies, which have a much greater exposure to China than other industries, fell the most.
Chip makers, who rely heavily on China for both sales and supply chains, were some of the worst hits. Advanced Micro devices slid 7 percent, while Nvidia fell 5.6 percent.
Data from IHS Markit shows that US production and business activity slowed down in February compared to the previous month and thus exceeded analysts’ expectations.
Travel restrictions, company closures, and other efforts to stop the virus from spreading have begun to disrupt supply chains and sales opportunities for Apple and other large companies.
Companies that depend on consumer spending, especially in travel-related sectors, also fell sharply.
Marriott International lost 2.7 percent and Carnival fell 1.8 percent.
American Airlines fell 3.2 percent. General Motors lost 2.2 percent and other car manufacturers slipped when the virus damaged car sales in China
The return on the 30-year treasury fell to reach lows, as investors sought the security of US government bonds.
fficers from the Korea Pest Control Association disinfect a store on Monday at Mangwon Market in Seoul
It fell to a record depth of 1.888 percent, according to Tradeweb, from 1.98 percent at the end of Thursday.
The return on the more closely followed 10-year treasury amounted to 1.47 percent.
That return, which is a benchmark for mortgages and other types of loans, was nearly 1.90 percent at the beginning of this year.
The gold price also rose and increased by $ 14.50 to $ 1,663.30 per ounce.
Traders’ expectations have grown that this year the Federal Reserve will have to lower interest rates to help the economy.
They count a 90 percent chance of at least one cut this year, an increase of 85 percent a day ago and a chance of 58 percent a month ago.
Uncertainties also weigh on energy prices.
Benchmark US crude oil lost $ 1.21 to $ 52.17 per barrel in electronic trading on the New York Mercantile Exchange.
It lost 50 cents to $ 53.38 a barrel on Friday.
Brent Crude, the international standard, gave up $ 1.41 to $ 56.53 per barrel.
The US dollar fell to 111.54 Japanese yen from 111.57 yen on Friday. The euro weakened to $ 1.0823 from $ 1.0847.