At the end of trading on Monday the us stock indices fell by more than 3.3%, the reason for this decline was the strong influence of the epidemic of the coronavirus Covid-19 on the global economy. In the history of the calculations Jones Industrial Average fell 3.6%, as a result of the decline in the current year is now 2%. Since the beginning of the 2020 Standard & Poor's 500 lost 0.15 percent, taking into account the fall on Monday, while the Nasdaq Composite is still in positive territory, as its growth rate of nearly 2.8%.
The South Korean authorities announced the highest level of thunderstorms on the background of rapid growth in the number of infected Covid-19. As of Monday, South Korea recorded 833 cases and was eight deaths, authorities say that in recent days the increase in the number of cases is increasing rapidly. In order to prevent the spread of the epidemic, the authorities for a week extended school holidays, which was supposed to end in early March.
The epicenter of the spread of coronavirus in Europe at the moment is Italy, where the number of cases reached 207, four people died. The Italian newspaper La Repubblica said that at the moment Italy is ranked third in the world in the number of infected Wuhan virus after China and South Korea.
Investors are greatly concerned that Covid-19 began to spread beyond China, as it can lead to dramatic consequences for the global economy.
Director of investments Wilmington Trust Tony's Mouth says - “it looks like we will get the economic downturn”. However, he indicates that the U.S. stock market could potentially show “correction of 10-20% in the next four weeks”.
The Dow Jones Industrial Average index on Monday fell to 1031,61 paragraph (3,56%) to 27960,8 points. Standard & Poor's 500 fell during the day on 111,86 paragraph (3,35%), making 3225,89 points.Nasdaq Composite at the end of trading fell on 355,31 points (3,71%) - to 9221,28 points.
Stock quotes Tesla Inc. fell on Monday to 7.5%. The electric car has a venture in China, and supplies more than 10% of its production in this country. Similar factors became the reason of reducing the cost coffee shop chain Starbucks Corp (NASDAQ:SBUX). (-3,3%) and the manufacturer of sports shoes Skechers USA Inc. (-7,5%).
The price of securities Bank of America Corp (NYSE:BAC). and JPMorgan Chase & Co. dropped respectively by 4.7% and 2.7% following the decline in us yields, which negatively affects profit of banks. Shares of Exxon Mobil Corp (NYSE:XOM). fell by 4.7%, Marathon Oil Corp (NYSE:MRO). by 6.4% due to the strong fall in oil prices.
In addition, significantly decreased capitalization of the insurer UnitedHealth Group (NYSE:UNH) Inc. (-7,8%), payment systems American Express Co (NYSE:AXP). (-5%) and Visa Inc (NYSE:V). (-4,8%), as well as the world's largest network equipment maker Cisco Systems Inc (NASDAQ:CSCO). (-5%).