In the past week, the US Stock market had tremendous ups and downs owing majorly to the news of Coronavirus outbreaks in various parts of the world. Investors and traders alike have failed to get hold of the fast-changing market trends due to the flu-like virus. The market will remain uncertain throughout this period as the number of cases keeps rising while the government and companies try to find a way to stop the count.
The impacts of these were clearly visible on the market on Thursday as the S&P 500 index took a sharp decline by around 3 %. This is a record in itself that this particular index has gained and lost around 3% more than 6 times throughout the span of 2 weeks. Such volatility in the market hasn’t been witnessed even in the past 12 months.
Stocks that took a plunge
Stocks of financial, industrial and energy companies took a steep fall on this Thursday. Among the major losers in the day, airplanes were the most notable ones. The stocks of United Airlines and American Airlines both took a steep fall by around 13% and on the other hand, the stocks of Delta fell by 7%. Airline officials seek for certain tax cuts and fees relaxation from the government in these extraordinary times because the revenue generation is at its lowest. Given such a situation in the market, investors are shifting to government bonds as they offer enhanced safety than the other stocks.
Post the market closed on Thursday, the announcement from Starbucks only increased the worriers the traders and investors. The espresso giants announced that they won’t be able to garner even 50% of the revenue they had generated from China in the previous year. A 50% decline would translate into a loss of around $400- $430 million as per revenue forecasts.
The news about coronavirus is making the rounds constantly. A cruise ship with suspected links to coronavirus cases has been held off the San Francisco coast. One of them is known to be on a fatal level! The Governor of California has announced a state of emergency as more than 18 states have reported coronavirus patients. Globally, there are more than 90,000 cases and 3,000 deaths reported as of yet.
To this growing concern, policymakers have started offering rate cuts so that the economy is shielded from the impact of coronavirus.