BOSTON (WBZ NewsRadio) — The Coronavirus is impacting the stock market as the number of diagnosed cases ticks up across the globe.
"After dismissing companies' concerns about the Coronavirus for weeks, investors finally seem to be taking the economic threat seriously," Tracy Johnke of Bloomberg Business News said.
At the opening bell, the Dow Jones fell by more than 950 points, erasing all gains for the blue-chip index for the year.
As of 11 a.m. Monday, the Dow is down 852 points, the NAQDAQ dropped 321, the S&P is down 94 points. That's the worst day for all three since August 2019.
The sharp fall in stocks happened following reports that the number of Coronavirus cases outside China are surging. On Sunday, Italy became the worst-hit country in Europe with 200 cases and 5 deaths from the virus. There was also a major spike in South Korea with 800 cases and 8 deaths, and Iran now has 47 cases and 12 deaths.
Companies selling luxury items like travel, cars, or appliances are taking the heaviest hits. Delta Airlines and American Airlines both fell by 5 percent, and Casino companies Wynn Resorts and MGM Resorts dropped about 4 percent. Tech stocks also took a tumble, with Apple falling more than 5 percent.
"Investors see consumers curbing spending on all except necessities due to the Coronavirus," Johnke said. "What's deemed a necessity? Investors like Clorox a lot. The stock is at a record, due to shoppers going after disinfectants."
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