Stocks Plunge For Sixth Straight Day In Global Slide Triggered By Coronavirus Fears
The outbreak not only threatens global supply chains, but impacts the way consumers interact with the economy. "They stop going out to eat, they don’t take the vacation, they cancel the business trip — that consumption, that spending, personal consumption is 68 percent of G.D.P.,” said Scott Clemons, the chief investment strategist for private banking at Brown Brothers Harriman.
The New York Times:
Coronavirus Fears Drive Stocks Down For 6th Day And Into Correction
The global stock market slid for the sixth straight day on Thursday, as the S&P 500 index plunged to its worst loss in almost nine years and investors worldwide grew increasingly fearful that the coronavirus outbreak could cause a recession as it squeezes corporate profits. The S&P 500, which just last Wednesday reached a record high, slid 4.4 percent, its worst day since August 2011. The index is down 12 percent since that peak, entering what is known as a correction — a drop of at least 10 percent that signals a more significant sell-off than a few days of pessimistic trading. (Phillips, 2/27)
The Wall Street Journal:
Global Stocks Follow Wall Street’s Steep Decline
The U.S. benchmark notched its largest single-day percentage drop since August 2011 on Thursday. The index entered a correction from its highest-ever closing level in just six trading days, plunging 12% from its Feb. 19 peak. On Friday, investors braced themselves for a deeper selloff ahead of the weekend pause with many worried about reports of new coronavirus cases in the coming days. “We’re drinking from a fireman’s hose this morning,” said Patrick Spencer, managing director at U.S. investment firm Baird. “It wasn’t a good close last night and certainly panic ensued.” (Ping and Chilkoti, 2/28)
The Washington Post:
Financial Markets Plunge; Japanese Island Declares State Of Emergency
Fears that a coronavirus pandemic could tip the world economy into recession sent global stocks into a tailspin Friday, with markets on track for their worst week since the financial crisis. European indexes fell sharply, led by losses in the travel and resources sectors, continuing the slump in Asia earlier in the day. U.S. futures pointed to further losses on Wall Street at the open Friday. (Taylor, 2/28)
