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Dow Tumbles Over 1,000 Points as Coronavirus Crisis Spirals

FOX News-  U.S. equity markets experienced a sharp selloff on Monday after a surge in the number of coronavirus cases outside of China.

The Dow Jones Industrial Average plunged by as many as 1,080 points, or 3.7 percent, before trimming its losses while the S&P 500 and Nasdaq fell by as much as 3.5 percent and 4 percent, respectively.

The selling dropped the Dow into negative territory for 2020.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 27963.86 -1,028.55 -3.55%
SP500 S&P 500 3234.37 -103.38 -3.10%
I:COMP NASDAQ COMPOSITE INDEX 9247.140762 -329.45 -3.44%

Meanwhile, China’s National Health Commission reported 409 new cases and 150 new deaths on Monday, raising those totals to 77,150 and 2,592, respectively.

The updated figures came after Chinese President Xi Jinping warned the outbreak would deliver a blow to the Chinese economy.

“The outbreak of novel coronavirus pneumonia will inevitably have a relatively big impact on the economy and society,” Xi said, adding the crisis is a “big test” for Chinese leadership.

Looking at stocks, travel-related names were sharply lower. Delta and United airlines were weaker along with cruise operators Carnival Corp. and Royal Caribbean and casino operators Wynn Resorts and MGM Resorts International.

Ticker Security Last Change Change %
DAL DELTA AIR LINES INC. 54.32 -3.55 -6.13%
UAL UNITED AIRLINES HLDG. 75.67 -2.35 -3.01%
CCL CARNIVAL CORP. 37.93 -3.76 -9.02%
RCL ROYAL CARIBBEAN CRUISES 96.61 -9.51 -8.96%
WYNN WYNN RESORTS LIMITED 121.27 -6.68 -5.22%
MGM MGM RESORTS INTERNATIONAL 29.70 -1.69 -5.37%

Big technology names also saw heavy selling with Apple, Facebook and Amazon seeing notable losses.

Ticker Security Last Change Change %
AAPL APPLE INC. 300.00 -13.05 -4.17%
FB FACEBOOK INC. 200.92 -9.26 -4.41%
AMZN AMAZON.COM INC. 2,011.72 -84.25 -4.02%

Meanwhile, drugmakers working to develop vaccines and treatment for the coronavirus gained. Gilead Sciences, Inovio Pharmaceuticals, Novavax and Nanoviricides were all higher.

Ticker Security Last Change Change %
GILD GILEAD SCIENCES INC. 72.61 +2.92 +4.18%
INO INOVIO PHARMACEUTICALS 3.98 +0.23 +6.28%
NVAX NOVAVAX INC. 8.21 +0.49 +6.35%
NNVC NANOVIRICIDES INC 9.34 +2.72 +41.09%

Elsewhere, Boeing fell after offering more support for suppliers who have been impacted by the 737 Max production freeze.

Wells Fargo outperformed after reaching a $3 billion settlement with the Department of Justice to resolve its fake account scandal.

Berkshire Hathaway was in focus after reporting its full-year 2019 profit reached $81.4 billion, boosted by a new accounting rule that CEO Warren Buffett vehemently disagrees with. Speaking with CNBC on Monday, Buffett said he doesn’t think the coronavirus “should affect what you do in stocks.”

Ticker Security Last Change Change %
BA BOEING COMPANY 318.10 -12.29 -3.72%
WFC WELLS FARGO & COMPANY 46.53 -1.17 -2.44%
BRK.B BERKSHIRE HATHAWAY INC. 222.15 -7.18 -3.13%

Commodities traded mixed with West Texas Intermediate crude oil down 3.7 percent to $51.43 a barrel and gold up 1.7 percent to $1,672.40 an ounce. The precious metal hit a seven-year high of $1,691.70 earlier Monday.

U.S. Treasurys soared, pushing the yield on the 10-year note down 9.3 basis points to 1.377 percent. The yield finished just over one basis point above its July 5, 2016, record low of 1.376 percent.

European markets were hit hard with Britain’s FTSE, France’s CAC and Germany’s DAX all trading lower by at least 3.6 percent.

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In Asia, Hong Kong’s Hang Seng paced the decline, down 1.8 percent, while China’s Shanghai Composite and Japan’s Nikkei shed 0.3 percent and 0.4 percent, respectively.