A plague may very well be upon us, folks, and the global economy is starting to show signs of getting jittery.
From deep within China came a novel and deadly strain of Coronavirus, possibly spread from bats to humans at a wildlife market in Wuhan. The virus has since spread globally, evading quarantine in the early days due to the illness’s fourteen day incubation period.
As it stands today, over 2,300 lives have been claimed by the virus, but those numbers themselves have been considered suspect thanks to China’s not-so-stellar track record when it comes to transparency.
Now, as there appears to be no end in sight at the current juncture, the stock market is starting to feel the effects.
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U.S. equity markets experienced a sharp selloff on Monday after a surge in the number of coronavirus cases outside of China.
The Dow Jones Industrial Average plunged by as many as 1,080 points, or 3.7 percent, before trimming its losses while the S&P 500 and Nasdaq fell by as much as 3.5 percent and 4 percent, respectively.
The point drop for the Dow and S&P, now in negative territory for 2020, was the largest since February of 2018. For the Nasdaq it was the steepest point decline since December of 2018.
The barrage of selling came after South Korea, the country with the third-most cases, reported 161 new cases on Monday, raising its total number of cases to 763 and its death toll by two to seven. Italy and Iran said their number of new cases jumped to 152 and 43, respectively.
China’s massive manufacturing power could soon be crippled by the illness, which would only cause further speculation and undulation within the markets.
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