No let up for stocks as market rout deepens over virus fears
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Headline: No let up for stocks as market rout deepens over virus fears
Summary: Global stock markets continued to plummet on Monday, with no signs of a slowdown in the rout, as investors grew increasingly anxious about the spread of the coronavirus. The Dow Jones Industrial Average fell over 1,000 points, or 3.6%, to 29,034. The S&P 500 index dropped 3.4% to 3,352, while the Nasdaq Composite lost 3.5% to 9,744.
Key points:
- The market rout has now wiped out all the gains made since the start of the year, with the S&P 500 index now down 10.4% for the year.
- The Dow Jones Industrial Average has fallen 12.1% from its record high in February, while the Nasdaq Composite has dropped 14.4%.
- The spread of the coronavirus has led to widespread travel restrictions, lockdowns, and cancellations of events, causing economic uncertainty and fear among investors.
- The yield on the 10-year Treasury note fell to 1.33%, its lowest level since 2013, as investors sought safe-haven assets.
- The dollar weakened against major currencies, while gold prices rose to a seven-year high.
Impact:
- The market rout has already had a significant impact on the global economy, with many companies announcing layoffs, production cuts, and supply chain disruptions.
- The spread of the virus has also led to a decline in consumer confidence, with many people canceling travel plans and reducing spending.
- The market volatility has also led to a surge in demand for safe-haven assets, such as bonds and gold, as investors seek to protect their wealth.
Outlook:
- The outlook for the global economy remains uncertain, with many experts predicting a recession if the virus is not brought under control soon.
- The market rout is likely to continue until there is a clear sign of a slowdown in the spread of the virus and a return to normal economic activity.
- Investors are likely to remain cautious and seek safe-haven assets until the situation improves.