Biggest Drop in US Market since 1987
The rapid spread of coronavirus in the past few days has led to a number of consequences across the world. Along with other sectors and markets, the stock market is turning out to be the biggest victim of the disease outbreak. The coronavirus fears have struck the US stock market on Thursday, pushing the US market to its biggest drop since 1987. The Dow Jones Industrial Average, already experiencing broad losses from more than a week, fell by 2352.60 or 10% to finish at 21,200.62.
The blue chip Dow Industrials for the first time fell 10% in a single session since 22% fall in the Black Monday stock market clash of 1987. “The news just continues to get worse and the travel ban puts an exclamation point on weakness we’re going to see in global GDP and, in turn, the US. We’re starting to get a sense of how dire the impact on the economy is going to be. The news has now hit Main Street to a more significant degree,” said Liz Ann Sonders, Chief Investment Strategist at Charles Schwab.
Massive Downfall in Shares of Major Companies
Along with Dow, the Nasdaq Composite Index, which includes the shares of many of the biggest tech companies, fell by 9.4%. The following are the major companies that experienced a massive loss.
- Apple fell by 10% to close at $248.23 a share
- Tesla fell by 11.6% to end the day at $560.55 a share
- Facebook’s shares dropped by 9.3% to finish at $154.47
- Intel fell by 12% to close at $45.54 a share.
- Twitter saw its shares fall by 14% to close at $26.78.
- HP fell by 14% to close the day at $17.51
- Netflix fell by 10% to finish at $315.25 a share
“As long as the virus continues to cause countries and governments to take drastic action, the problem isn’t going to go away any time soon,” said Jesse Cohen, US market analyst at Investing.com.