Jan 27, 2020

Coronavirus sparks stock market tumble

People wearing masks on the first day of the Lunar New Year in Hong Kong, Jan. 25. Photo: Dale de la Rey/AFP via Getty Images

The Dow Jones Industrial Average dropped more than 450 points Monday, as worries about the coronavirus rattled U.S. markets.

Why it matters: The coronavirus could drastically affect markets if consumers refrain from travel. Companies that rely on tourism including airlines and resorts were hit especially hard Monday. The sell-off marked the Dow's first five-day losing streak since August, AP reports. It was also the S&P 500's worst day since October.

  • Most Asian markets were closed for the Lunar New Year, but Japan's Nikkei dropped by 2.03%.
  • Traders retreated to gold and bonds for safer holdings.

The big picture: Over 2,800 cases of coronavirus have been confirmed in China while dozens of cases have appeared elsewhere. The U.S. has five confirmed cases according to the latest Centers for Disease Control data. Multiple areas of China are limiting travel to contain the outbreak.

Go deeper: U.S. evacuates personnel as coronavirus death toll climbs

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World coronavirus updates: Spain's health care system overloaded

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

Two planes with protective equipment arrived to restock Spain’s overloaded public health system on Wednesday as confirmed cases surpassed 100,000 and the nation saw its biggest death toll so far, Reuters reports.

The big picture: COVID-19 cases surged past 900,000 and the death toll exceeded 45,000 early Wednesday, per Johns Hopkins data. Italy has reported more than 12,000 deaths.

Go deeperArrowUpdated 33 mins ago - Health

Coronavirus fears start to weigh on global business, stock markets

Photo: KAZUHIRO NOGI/AFP via Getty Images

Worry about the Wuhan coronavirus is beginning to have a serious effect on business as new cases are discovered worldwide and China ramps up efforts to contain its spread.

What's happening: China extended its Lunar New Year holiday until Feb. 2 from Jan. 30, to help deal with the outbreak, as the country's death toll rose to 80 and the number of confirmed cases reached upwards of 2,700.

Go deeperArrowJan 27, 2020

Stocks fall more than 3% as coronavirus cases spike

Photo: Johannes Eisele/AFP via Getty Images

Wall Street had its worst day in two years on Monday, following a spike in coronavirus cases in South Korea and Italy. The S&P 500 fell 3.3%, the Nasdaq Composite fell 3.7% and the Dow Jones Industrial Average sunk 1,030 points (3.5%).

The big picture: This is the U.S. stock market's biggest reaction thus far to the coronavirus, largely shrugging it off as a threat to the global economy (though the bond market has not). While the S&P is down from record highs — which it notched last week — the index is still above lows touched earlier this year.

Go deeperArrowUpdated Feb 24, 2020 - Economy & Business