Dow closes down 1,000+ points
FOX Business’ Kristina Partsinevelos says gold acted as ‘a safe haven’ for investors after stocks ended in the red amid coronavirus fears.
U.S. equity futures are pointing to gains at the start of trading on Tuesday following Monday's plunge amidst the spread of coronavirus.
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The major futures indexes are indicating a rise of 0.8 percent or a gain of more than 200 Dow points.
In Monday's session, Wall Street suffered its worst session in two years, with the Dow Jones Industrial Average slumping more than 1,000 points on fears that a viral outbreak that began in China will weaken the world economy.
|I:DJI||DOW JONES AVERAGES||27960.8||-1,031.61||-3.56%|
|I:COMP||NASDAQ COMPOSITE INDEX||9221.280101||-355.31||-3.71%|
Asian markets continued a retreat with Japan's Nikkei down 3 percent after returning from a holiday on Monday. Hong Kong's Hang Seng edged 0.2 percent lower and the Shanghai Composite sank 1.6 percent.
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Technology companies were among the worst hit by Monday's sell-off. Apple, which depends on China for a lot of business, slid 4.8 percent. Microsoft dropped 4.3 percent. Banks such as JPMorgan and Bank of America were also big losers.
|JPM||JP MORGAN CHASE & CO.||132.16||-3.65||-2.69%|
|BAC||BANK OF AMERICA CORP.||32.73||-1.63||-4.74%|
Cruise lines suffered step losses, as Carnival, Royal Caribbean Cruises and Norwegian Cruise Line were three of the top four decliners in the S&P 500, each falling around 9 percent.
American Airlines also dropped sharply, and after the market closed, United Airlines withdrew its earnings estimate for 2020 because of uncertainty over how long the virus outbreak will last.
|RCL||ROYAL CARIBBEAN CRUISES||96.61||-9.50||-8.95%|
|NCLH||NORWEGIAN CRUISE LINE HOLDINGS LTD.||42.58||-4.39||-9.35%|
|AAL||AMERICAN AIRLINES GROUP INC.||25.45||-2.37||-8.52%|
|UAL||UNITED AIRLINES HLDG.||75.47||-2.54||-3.26%|
|GILD||GILEAD SCIENCES INC.||72.90||+3.20||+4.59%|
Gilead Sciences climbed 4.6 percent and was among the few bright spots. The biotechnology company is testing a potential drug to treat the new coronavirus. Bleach-maker Clorox was also a standout, rising 1.5 percent.
More than 79,000 people worldwide have been infected by the new coronavirus. China, where the virus originated, still has the majority of cases and deaths. The country's economy has been hardest hit as businesses and factories sit idle and people remain home-bound because the government has severely restricted travel and imposed strict quarantine measures to stop the virus from spreading. Economists have cut growth estimates for the Chinese economy.
CHINA'S CORONAVIRUS SURGES IN UNEXPECTED PLACES AS 79,000 INFECTED GLOBALLY
The ripple effects of the outbreak are being felt all around the world, as China is both a major importer of goods and a source of parts for intricate supply chains.
China's government promised tax cuts and other aid Monday to help companies recover despite anti-disease controls that shut down much of the world's second-largest economy last month. Economists say it is likely to be at least mid-March before automakers and other companies return to full production.
Crude oil prices slid 3.7 percent on Monday but were stable Tuesday. Benchmark U.S. crude oil rose 26 cents to $51.69 per barrel in electronic trading on the New York Mercantile Exchange. It fell $1.95 to settle at $51.43 a barrel on Monday. Brent crude oil, the international standard, gained 28 cents to $56.06 per barrel. On Monday, it dropped $2.17 to close at $55.77 a barrel.
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The rapid spread from China to other countries is upping anxiety about the growing threat the outbreak poses to the global economy.
The Associated Press contributed to this article.
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