Dow Drops Nearly 1,000 Points, Oil Down 4% on Coronavirus Fears

Dow Drops Nearly 1,000 Points, Oil Down 4% on Coronavirus Fears

(AmericanProsperity.com) – At the open of the Dow Industrial Average on Monday morning, stocks plunged as many 996 points at the opening bell as Coronavirus spreads globally. The S&P 500 and Nasdaq also opened lower by 3.1% and 3.9%.

Oil has also been put under pressure as West Texas Intermediate (WTI) dropped to 4.5% as of 11:15 am EST.

According to reports, the challenges for US companies are two-fold. First, factories may start to reopen at a quick rate but labor shortages are expected. Second, while there is manufacturing going on in China, perhaps the biggest problem is that China’s supply chain is broken. Roads are blocked, trains aren’t running, and airports are closed, which leaves no way for products to ship to their final destinations.

On Monday, South Korea reported 161 new cases of Coronavirus. That raises the total number in that country to 763. Italy and Iran also saw new cases jump to 152 and 43, respectively.

The early selling put the Dow for negative territory for 2020.

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