Coronavirus Stock Market Tank is Biggest Since 2008
The stock market has been sent reeling for a second straight day amidst reports of a growing Coronavirus pandemic, with the loss in stock value being the greatest two-day decline since the financial crash of 2008.
The S&P 500 index declined by more than 3% on Tuesday, closely followed by the Dow and NASDAQ. The decline in stock prices seems primarily fueled by new reports of the Chinese Coronavirus’ global spread. The disease is beginning to enter widespread circulation in countries such as Iran and Italy, the latter of which has been hardest hit by the viral disease in any country outside of Asia.
Trump administration officials are reassuring the public about the containment of the viral disease, hoping to shore up the decline in stock prices by encouraging discounted investment in the market.
Markets plunged immediately when officials of the Center for Disease Control were quoted as saying a genuine spread of the pandemic to the United States was “inevitable.” The governmental agency then went on the walk back the claims.
The coronavirus has directly affected the American economy by putting an effective freeze on imports from China, shutting down trade and exchange of goods in the pandemic’s epicenter. The implications of the disease on the American economy have led some commentators to question the wisdom of closely linking American markets to the authoritarian Communist nation, where the response to the disease has been heavily criticized for a lack of transparency.
The coronavirus outbreak shows how important it is for us to keep our borders secure.
It's also why @realDonaldTrump is right to want a trade policy focused on increasing American manufacturing. He understands that it's dangerous for our economy to be beholden to China!
— Donald Trump Jr. (@DonaldJTrumpJr) February 25, 2020
As the virus appears to be picking up steam globally, it may seem that health officials are finally getting the better of the epidemic in China. New diagnoses of Coronavirus in China have decreased significantly over the past week.
The human suffering caused by the disease obviously remains the most pressing issue at hand. The economic implications will prove less lasting, and the decline in stock prices may present an opportunity for financial investment.