The US stock market suffered a sharp decline on Monday in which the Dow Jones industrial average lost more than 450 points, while investors were dealing with concerns generated by the spread of a new virus in China that threatens global economic growth.
The fall caused Dow Jones his first five-day streak of losses since early August and caused the worst day of the S&P 500 since the first days of October. Both indicators fell around 1.5%, yielding a good portion of their earnings this month.
The barrage of sales on Wall Street came after China announced a marked increase in the number of cases of the virus.
Airlines, hotels and other companies that depend on travel and tourism suffered great losses. Gold prices increased, as did bonds, because traders sought refuge in safer assets. The 10-year Treasury bond yield fell to 1.60%, its lowest level since October. The general decline of the market came after the markets in Europe and Japan also closed down.
“More cases were recorded over the weekend,” said Quincy Krosby, chief market strategist for Prudential Financial. “That caused investors and operators to worry about whether it is a longer event. The next question is: What happens to global growth if this continues and is magnified? ”
The Dow Jones lost 453.93 units, or 1.6%, and was 28,535.80. The S&P 500 yielded 51.84 integers, or 1.6%, and closed at 3,243.63. The Nasdaq fell 175.60 points, or 1.9%, and was set at 9,139.31. The Russell 2000 small business lost 18.09 units, or 1.1%, and was stationed at 1,644.14.
The Chinese health authorities have confirmed 2,750 cases of the virus and 81 related deaths and the government extended a three-week holiday for three days as a preventive measure to prevent the virus from spreading. The virus has spread to a dozen countries, including the United States. In addition to being a threat to people’s health and life, investors are concerned about the damage it will cause to the income of companies around the world.
The US reference crude lost $ 1.05 to $ 53.14 per barrel in New York. The Brent mix, an international benchmark, fell 1.37 dollars and stood at 59.32 dollars per barrel in London.
Gold rose $ 5.50 to $ 1,577.40 per ounce.
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