Investors Head For The Hills As Coronavirus Economic Data Comes Out
Worse than expected economic data has sent yield and stock prices down as precious metal prices increased, according to The Wall Street Journal.
Around 12 PM EST on Friday, the S&P500 was down 1.2 percent, the Dow Jones Industrial Average was down 0.95 percent, and tech-heavy NASDAQ was down 2.19 percent. Investors flocked towards traditionally safe assets like government bonds and gold.
US stocks are on track for declines this week as investors concern about the coronavirus affecting global growth persists. The disease has sickened and killed thousands and has stalled the Chinese economy. “It can really slow down many areas of the economy,” said Dev Kantesaria, founder of Valley Forge Capital Management.
Economic data such as the IHS Markit's flash reading for measuring manufacturing and services business activity fell to its lowest level in 6 years. Furthermore, data indicated that sales of previously owned US homes decreased by 1.3 percent in January.
Worse than expected economic data has sent yield and stock prices down as precious metal prices increased.