Stocks kicked off the week with a big loss, and the DOW suffered its worst day since October.
With all eyes on the coronavirus, traders are worried about the virus spreading and stocks were hammered at the open.
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After hitting sessions lows, stocks clawed there way back (a little) and were at session highs in the afternoon.
Then after a choppy second half of the trading day, stocks dipped again.
Why are traders worried?
The death toll for the coronavirus has climbed to more than 80 and there are now more than 2,800 confirmed cases in 12 countries.
Ana in addition to the unfortunate loss of human life, the coronavirus is starting to have a real impact on the global economy.
China has restricted some travel in the country. And the U.S. State Department is urging citizens to reconsider traveling to China.
There’s also the fact that this is the perfect opportunity to take some profits off the table. Especially after such a big move in 2019.
The NASDAQ was hardest hit, down more than 2.0% at the open and finishing the session with a 1.9% loss. And the S&P lost 1.6%, which is the first 1-day drop of more than 1.0% in the last 74 trading sessions!
With today’s slide the DOW is now in negative territory for the year.
Here’s where the major indices ended the day:
- The S&P finished with a 1.6% loss. Down 52 points, the S&P ended at 3,244.
- The DOW ended lower by 1.6%. Dropping 454 points, the DOW closed at 28,536.
- The NASDAQ was down 1.9%. With a 173 point loss, the NASDAQ finished at 9,142.
Crude Oil (CL) has dropped for 5 days straight. Down 1.8%, CL ended the day at $53.20 a barrel.
Because of coronavirus travel concerns, airlines were hit hard today.
Delta (DAL) lost 3.4%, United (UAL) dropped 5.2% and American (AAL) finished lower by 5.5%.
The gaming industry was also hit.
Las Vegas Sands (LVS) suffered a 6.8% loss and Wynn Resorts (WYNN) was hit with an 8.1% drop.
And the VIX (aka “Fear Index”) jumped 25.2% to highs not seen in 3 months.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
Source: RockwellTrading by Markus Heitkoetter | Original Link