The stock market had a historically bad day as the Dow Jones Industrial Average had its worst single-day point drop in history, losing 1,191 points to close at 25,766.64. The S&P 500 posted its worst day since August 18, 2011, losing 137.63 points, falling below 3,000. The Nasdaq dropped 414.30 points, closing at 8,566.48. The markets entered correction territory as all three indexes are down 10% from their previous highs.
The markets started the day down with the Dow futures trading down almost 400 points after the Centers for Disease Control warned that the virus will likely spread to the United States.
The markets have been a tailspin over global fears about the coronavirus outbreak. The outbreak shut down factories across China, as roughly 100 million people were quarantined in an effort to prevent the epidemic from spreading. Investors are worried about the impact that will have on the supply chain. Many companies have said they will not meet their first-quarter earnings targets, and Goldman Sachs predicted that American companies will not show any profit growth in 2020 due to the viral outbreak.
All three indexes are on track to have their worst week since the financial crisis in 2008.
Health officials in 49 countries have reported infections as the global total climbed above 82,000. While most of the infections are in mainland China, the virus is starting to rapidly spread across the globe. There have been more than 1,700 cases reported in South Korea, and Italy has seen a significant spike with 650 people confirmed cases.
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