Coronavirus Erased $1.7 Trillion Of U.S. Stock Market Value In Two Days
The S&P 500 lost about $1.737 trillion in value over two days as fears over the coronavirus causing a global economic slowdown led investors to flee riskier assets, CNBC reported on Tuesday.
S&P Dow Jones Indices’ Senior Index Analyst Howard Silverblatt said “the equity benchmark lost $810 billion in value on Tuesday, adding to its $927 billion loss on Monday,” and has dropped $2.138 trillion since last Wednesday’s high.
CNBC reported that the two-day loss of 6.3 percent “ was the largest for the benchmark since August 2015, when the Chinese government devalued the yuan amid the U.S.-China trade war.”
The deadly coronavirus, which continues its spread across the globe, has infected 80,000 people and killed more than 2,700 — roiling the markets.
“Companies like Apple, Nike, United Airlines and Mastercard have all raised flags about the coronavirus and its impact on their earnings,” CNBC reported, adding that “Chip stocks, which rely heavily on revenues from China, are being abandoned by Wall Street as it becomes more apparent supply chain disruption will persist until the epidemic is contained.”
Centers for Disease Control and Prevention officials warned on Tuesday that they expect the virus to spread in the United States and suggested that Americans ““prepare for the expectation that this is going to be bad.”