According to the publication, the Dow Jones Industrial Average plunged 900 points, approximately 3.1 percent, and the S&P 500 Index declined 100 points, which is equal to 3 percent.
Per CNN, the losses come amid similar declines in Asia and Europe on Monday, reportedly driven by investors gripped by coronavirus fears.
Until now, CNN reports that the stock market reaction to the coronavirus has been “muted,” with U.S. stocks hitting record highs. Before its recent dip, The Hill said that the S&P 500 Index hit an all-time high just last week.
The stock market declines come amid warnings from companies that believe the coronavirus will affect projected financial targets.
“A growing number of companies are warning that the coronavirus will prevent them from meeting sales or profit targets for the first three months of the year,” CNN reported.
“Reduced demand for goods and services, and factory closures in China, are also expected to knock the global economy and weigh on trade at a time when Japan and Germany are already teetering on the brink of recession.”
As noted by Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, the declines should not be a surprise, per CBC.
“Stock markets around the world are beginning to price in what bond markets have been telling us for weeks — that global growth is likely to be impacted in a meaningful way due to fears of the coronavirus.”
Coronavirus has ended the “Boris bounce” in UK share prices. The 3.5% drop in the FTSE 100 today has completely wiped out all of the gains in Britain’s main stock market index since the general election pic.twitter.com/d1Jhv5ptb1
— Ed Conway (@EdConwaySky) February 24, 2020
Although some economists have predicted slowed growth in the short-term due to coronavirus fears, The Hill reports that they also expect a quick rebound after the virus is contained.
Many businesses face threats to their profits and revenue, from Apple to Nike, both of whom rely heavily on Chinese production. As of now, CBC reports that technology companies were among the hardest hit, with the former declining by 4.3 percent and the latter by 3.3 percent. Banks also experienced significant declines — Bank of America dropped 3.9 percent, and JPMorgan Chase dipped 2.7 percent.
As previously reported by The Inquisitr, the medical community is allegedly warning that the coronavirus epidemic is on the brink of disaster. While World Health Organization head Tedros Adhanom Ghebreyesus claims there is still a containment window open, he claims it is narrowing by the day. Paul Hunter, a professor in medicine at the University of East Anglia echoed, Ghebreyesus, pointing to reports that suggest the window of opportunity for containment is closing.
As of now, the number of individuals infected by the virus is over 79,000 globally, with a reported 2,470 deaths.