Covid-19 Fears Recalling 2008 Economic Crash
The Dow Jones Industrial Average plummeted more than 900 points on Friday, as financial markets continue to plummet on uncertainty over the spread of the novel coronavirus. Concerns about the spread of the disease and a global financial slowdown are driving deep dips in the stock market. The Dow suffered its worst week since the financial crash of 2008.
The S&P 500 and Nasdaq similarly declined Friday, both opening down by approximately 2%. The Dow was down by more than 3%.
The plunge comes as the U.S. Food and Drug Administration announced it’s been alerted to the first manufacturing shortage of a drug due to a viral coronavirus outbreak that began in China and has now reached American soil.
Officials also warned Americans earlier this week to prepare for community spread of coronavirus in the U.S., and companies have warned investors of supply chain issues related to the outbreak.
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Asian stocks fell sharply lower in early trading Friday, as Japan’s Nikkei sank to into correction territory as coronavirus fears continued to rattle global markets. The Nikkei plunged 4% NIK, -3.67% .
Hong Kong’s Hang Seng Index HSI, -2.42% fell 2.6%, while the Shanghai Composite SHCOMP, -3.71% slid 2.9% and the smaller-cap Shenzhen Composite 399106, -4.93% dove 3.6%. South Korea’s Kospi 180721, -3.30% tumbled 3%. Stocks inched up in Malaysia FBMKLCI, -1.52% , but sank in Taiwan Y9999, -1.24% , Singapore STI, -3.23% and Indonesia JAKIDX, -1.50% . Australia’s S&P/ASX 200 XJO, -3.25% retreated 2.9%.
The Stoxx Europe 600 index SXXP, -2.87% slid 4.5% to 371.98. The index fell 3.75% on Thursday and, meeting one definition of a correction, dropped 10.2% from its record close of 433.90 reached on February 19, 2020. The index is down over 11.5% for the week and that is on par with a 11.4% drop in August 2011.
Elsewhere, the German DAX 30 index DAX, -3.53% slumped 5%, while the French CAC 40 index PX1, -3.03% and the FTSE 100 index UKX, -2.98% each dropped more than 4%. All of those indexes have now moved into correction territory. The euro EURUSD, -0.1545%, however, rose 0.3% against the dollar to $1.1042.