The coronavirus has already had a major impact on the economy in China as the government moved to shut down affected areas, and soon the American business world will be feeling the hurt as well, a new report indicates.
NBC News correspondent Stephanie Ruhle reported on Twitter that Wall Street is preparing for some major impacts across the American business landscape, with the effects starting to be felt this week. Ruhle reported that many major companies are already moving to cancel events and ground employees who would normally be traveling.
“Wall St bracing for a week of #corona related cancellations from Corporate America,” Ruhle reported. “Bank exec telling me to expect most Fortune 500 companies to announce employee travel restrictions ranging from non-essential to complete ban & more event cancellations ahead.”
Fears of the coronavirus’ spread already led to a major stock selloff over the course of the last week. As MarketWatch reported, the stock market lost $4.3 trillion in value over the course of the last seven sessions, and there could be further economic impacts given the lingering travel restrictions from China.
Katie Nixon, investment officer at Northern Trust Wealth Management, wrote Friday in a note to investors that the Chinese government’s move to place tight restrictions on travel and shipping will have effects across the globe.
“Movement and activity is restricted in China, and China is at the center of many critical global supply chains,” Nixon wrote, via MarketWatch.
The stock market’s drop drew considerable attention from President Donald Trump, who this week made statements trying to soothe fears and assuring that health officials were close to developing a vaccine. Other health officials cautioned that it would take much longer for the vaccine to be fully developed and ready to be deployed to the public.
The predictions of a widespread economic impact come amid reports that the virus has spread further than American health officials have yet announced. As The Inquisitr reported, former Food and Drug Administration Commissioner Scott Gottlieb said on CBS’s Face the Nation that there are “probably hundreds or low thousands of cases … that aren’t reported yet.”
As The Hill noted, Gottlieb said that health officials need to start mitigating the implications of the spread of the virus.
This week saw the first death of coronavirus inside the U.S., with a spate of newly reported cases in California and Washington state including cases where they were contracted from others in the community.