Tuesday was a really bad day for the U.S. stocks as U.S. markets declined for the second day in a row. As a reminder, on Monday, the coronavirus outbreak had a negative impact on the stocks.
On February 25, the Dow Jones Industrial Average declined 879 points or about 3.2%. Moreover, the index’s gains from the beginning of the year disappeared on Monday, and Tuesday marked its fourth-largest swing from highest to the lowest point in a single session.
At the moment, the Dow is now more than 8% lower than its more recent high. It is important to mention that, the Dow would need a total of 10% to be in a correction officially.
Other major stock indexes also declined on Tuesday. For example, the broader S&P 500 fell by 3%, more than 7% below its most recent high. The Nasdaq Composite dropped 2.8%; moreover, the index is nearly 9% below its latest peak.
U.S. stocks and coronavirus outbreak
Coronavirus outbreak is a severe challenge for the stock markets. This virus continues to affect the stock markets.
According to an official of the U.S. Centers for Disease Control and Prevention, quarantine, as well as travel restriction, helped to contain the virus.
Many world-famous companies such as Apple, Nike, United Airlines, and Mastercard underlined the importance of this virus on their earnings.
On Monday, the number of confirmed cases in Italy and South Korea affected the global markets.
The U.S. Federal Reserve is closely monitoring the Coronavirus’s spread and its economic impact. According to Vice Chairman Richard Clarida, it is too early to speculate about its effects. Nevertheless, the Federal Reserve is ready to take measures if something goes wrong.
The virus reached many countries outside of Asia. The governments in cooperation with the World Health Organization are trying to contain the virus outbreak. This way, it will be easier to improve the situation.