Recently, the Dow Jones has been on a constant decline. This past Thursday, it decreased by 4.4%. It has not seen a decline like this since the financial crisis in 2008. The Standard & Poor's 500 and the Nasdaq also fell. The Dow Jones is down nearly 13% from its recent high. It has been decreasing for 10 days, and it has not decreased this quickly since 2011. This only adds to the fears investors are already having because of the coronavirus. This fall has erased one third of stocks' gains since Trump's 2016 election.
Investors fears are only increasing since the first US case of coronavirus that could not be linked to travel or contact has just recently occurred in California. With this, companies and musicians have began canceling conferences and concerts due to fear of the virus. These companies stocks are being affected by this. This Thursday, Tesla's stock price fell 13%. Some Wall Street veterans believe that the coronavirus was an external shock that scared investors.
The US will average 1.25% growth for the first half of the year. While this epidemic has negatively affected the US economy, Europe is in worse shape. Germany and Italy run close to being in a recession, and they do not have the tools to fix it because of there previous weak growth and financial crises.
How much longer do you believe the coronavirus will continue to affect the US economy? Since many different countries are being affected by the virus, what do you think this means for our future?
https://www.washingtonpost.com/business/2020/02/27/stock-market-dow-coronavirus/
2 comments:
As long as the virus continues to spread I believe that the US economy, as well as the world economy, will continue to be affected. The world depends on trade and with the fears of the coronavirus trade becomes more difficult. It's hard to tell how far the economic downturn will go, but all we can say is as long as the virus is progressing it will continue to happen.
I agree with what Cody is pointing out how it will continue to impact economies all around the world as long as it continues to spread. Yet it will leave a much longer impact due to there being lower overall activity due to the severe decrease in consumption. Hopefully the economy will be able to stem the tide and stimulate the economy in order to keep it moving.
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