New York – Wall Street linked a second day of heavy losses on Tuesday and its main indicator, the Dow Jones Industrials, fell 3.15% due to the fear that the spread of the coronavirus outside China and its irruption is generating in the markets. in the United States, where authorities urged the population on Tuesday to “prepare”.
At the end of the session on the New York Stock Exchange, which registered its worst day in two years yesterday, the Dow Jones group cut 879.44 points, standing at 27,081.36 whole, and among its 30 listed companies they suffered the largest declines in American Express (-5.69%) United Technologies (-5.30%), Visa (-5.23%) and UnitedHealth (-5.18%).
The selective S&P 500, which lost 3.03% or 97.68 points, to 3,128.21, and the Nasdaq composite market index, which brings together the main US technology companies, also slipped 2, also experienced notable drops. 77%, or 255.67 integers, up to 8,965.61 integers.
By sector, the most affected was the energy sector (-4.34%), linked to the price of a barrel of Texas oil, which fell below the psychological barrier of $ 50, at 49.90, after a decline of 3 % due to the coronavirus but also due to the lack of action by OPEC regarding more cuts in its production.
Behind, the basic materials sector suffered (-4.3%), the industrial sector (-4.03%), the financial sector (-3.41%) and the technology sector (-3.18%).
The New York parquet began the day in green, like other international squares, but then quickly turned red and accelerated its losses as the hours passed by investors’ fear that a scenario of economic slowdown due to the coronavirus would continue ( COVID-19).
The accumulated number of deaths so far in China stands at 2,663 and that of confirmed cases at 77,658.
The Center for Disease Control and Prevention (CDC) of the United States assured on Tuesday that the coronavirus will spread throughout the country and that families must “prepare” for a loss of income and changes in daily life, which had a significant impact on Wall Street.
“It is not a question of whether the coronavirus will spread throughout the United States, but when and how many people will have a serious illness,” said Nancy Messonnier, director of the CDC’s National Center for Immunization and Respiratory Diseases, in a conference call.
The latest official figures indicate that there are 53 confirmed cases of COVID-19 in the country, of which 36 correspond to passengers of the Diamond Princess cruise ship that was anchored in Japan and that were repatriated last week.
Protecting yourself with a mask is not enough. Getting infected with the dangerous coronavirus is easier than you imagine.
Analyst Ed Yardeni, of the firm Yardeni Research, opined in a note that the collapse in the stock market responds to a “panic attack”, but also pondered that quarantines in other countries “are disrupting the global supply chain and increasing possibilities of a global recession, at least in the manufacturing sector. “
Investors opted for less risky assets, such as public debt, causing the 10-year Treasury bond to see momentarily lower returns than ever, below those achieved after the 2016 “Brexit” referendum, the 1,324%. At the close of Wall Street, they stood at 1.35%.
Analyst Art Hogan, from National Securities, said that “volatility is normal” but highlighted the fear caused by “this particular drop from all-time highs” in such a “short period of time”: between Monday and Tuesday, the Dow Jones has cut nearly 1,900 points.
However, the grandmother’s health status is unknown.
At the corporate level, at the last minute, the entertainment giant The Walt Disney Company announced that its CEO, Bob Iger, was retiring from his position and that he will remain until the end of next year as CEO. In post-close electronic trading, the firm lost 2.58% in reaction to the news.
In other markets, gold fell to $ 1,637.10 an ounce and the dollar lost ground against the euro, which was changed to $ 1,0883.