Wall Street Drags down as Coronavirus Continues to Run Rampant

by Ralf Jennings

U.S. stocks usually remain unaffected to an extent in times of crisis. However, due to the rise of the novel virus strain, U.S. stocks have sold off and the Nasdaq had their worst daily percent growth in three weeks on Friday as growing fears overturned economic growth. The biggest drags on the S&P index were caught by the technology sector affecting big-boys such as Microsoft Corp (MSFT.O), Amazon.com Inc (AMZN.O) and Apple Inc (APPL.O).

The S&P technology index (.SPLRCT) dropped 2.3% which shows an indirect response from China’s economic slowdown.

China recently reported new increases in cases with South Korea becoming the latest hotspot with 100 new cases and a further 80 people being infected in Japan. “It’s creating a wild card” for companies and investors, said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. “Going into a weekend not so long after the stock market was hitting highs, people are taking some money off the table.”

The following worries pushed Wall Street’s fears into overdrive as the CBOE volatility Index caused investors to safely park their assets as the VIX hit its highest closing level mark since Feb 3.

The Dow Jones Industrial Average (.DJI) dropped 227.57 points (-0.78%) to 28,992.41 while the S&P 500 (.SPX) lost 35.48 points (-1.05%) to 3,337.75 and the Nasdaq Composite .IXIC dropped 174.38 points (-1.79%) to 9,576.59. Certain reasons such as hopes of easing the monetary pain by major central banks further pushed the S&P 500 and the Nasdaq to all-time high earlier this week.

Volumes on U.S. exchanges were at 8.28 billion shares compared to the 7.66 billion average mark for the full session over the previous 20 days of training. In retrospect, the S&P 500 posted 30 new 52-week highs and 8 new lows while the Nasdaq Composite recorded 74 new highs and 59 new lows.

Ralf Jennings

I have been covering reports on everything relating to American politics and economic trends in the U.S. since 1999. After my graduation from college, I began to work as a part-time writer for a local magazine and this experience helped me build my writing and reporting skills. I eventually got aRead more...